Highlights
More encouraging-sounding comments from President Trump on the US-China trade war lifted stocks Monday along with a rally in Apple shares. The Dow Jones industrial average and the S&P 500 both gained 1.1 percent and Nasdaq rallied 1.4 percent. US Treasury yields and oil prices fell while the dollar was mostly higher.
Trump's latest remark that he expected a fantastic trade deal with China added to hopes already kindled on Friday that the US-China trade dispute would cool off. Separately, the market also appeared to react favorably to Council of Economic Advisers Chair Kevin Hassett's comment that the government shutdown was likely to end this week. There is no sign of activity or progress toward a resolution of the shutdown standoff. Investors also appeared less concern about credit worries that spooked the market last week.
Apple was the day's leader to the upside after an analyst upgrade to buy on the strength of its latest iPhone. Among sectors, in addition to technology, best performers included financials, industrial metals, aerospace & defense, and trucking. Lagging were staples retailers, health & personal care, telecom, and auto parts retailers.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.