Lucas Jackson/Reuters
- US equities climbed on Tuesday after the White House calmed investor nerves by clarifiying that its trade deal with China remains intact.
- Futures for major indexes tumbled on Monday evening after White House trade adviser Peter Navarro told Fox News the US-China agreement was “over.”
- Navarro later walked back the comments, saying they were “wildly taken out of context.” President Donald Trump spoke out as well, saying the deal is “fully intact.”
- Oil extended its rally above $40 per barrel, with West Texas Intermediate crude rising as much as 2.9%, to $41.63.
- Watch major indexes update live here.
US stocks climbed on Tuesday after the White House calmed investor nerves by clarifiying that the country’s trade deal with China remains intact.
Futures contracts for major indexes tumbled on Monday evening after White House trade adviser Peter Navarro told Fox News the US’s trade agreement with China was over. He cited “the lack of trust we now have in the Chinese Communist Party” and blamed the country for the coronavirus pandemic. Dow futures tanked roughly 400 points following Navarro’s interview.
The trade advisor quickly walked back his comments, saying they were taken “wildly out of context” and “had nothing at all to do with the Phase 1 trade deal.” President Donald Trump deemed the agreement “fully intact” in a late Monday tweet. The comments helped erase futures-market losses, and the gains carried over into regular trading.
Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:
- S&P 500: 3,140.48, up 0.7%
- Dow Jones industrial average: 26,248.91, up 0.9% (224 points)
- Nasdaq composite: 10,114.92, up 0.6%
Bank stocks led the rally, with JPMorgan, Bank of America, and Citigroup all climbing. The so-called reopening trade – including hotel, cruise, and retail stocks – also gained.
Wirecard shares spiked as much as 45% following reports that former CEO Markus Braun was arrested on suspicion of false accounting. The German fintech company slid 56% at intraday lows on Monday after announcing $2 billion in missing cash likely doesn’t exist.
Oil extended its climb above $40 per barrel. West Texas Intermediate crude gained as much as 2.9%, to $41.63. International benchmark Brent crude rose 2%, to $43.93, at intraday highs.
Tuesday’s upswing follows a less impactful session to start the week. The Dow rose 154 points on Monday as investors turned their focus to economic reopening progress from risks of a second wave of COVID infections.
Tech stocks including Amazon, Adobe, and Square led the rally. Popular stay-at-home plays Netflix, Zoom, and Peloton all hit record highs as investors viewed rising coronavirus case counts as a harbinger for longer lockdowns. Gold reached its highest level in nearly eight years.
Now read more markets coverage from Markets Insider and Business Insider:
Fastly surpasses Zoom as the best performing work-from-home stock
Blackstone CEO Stephen Schwarzman forecasts ‘big V’ economic recovery this summer
Leave a Reply
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
