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Markets staged a powerful rebound on Monday after registering strong losses in the previous session, with stocks rising sharply, as tensions of an ensuing trade war between the United States and China appeared to ease. As a result all three major indices posting their best one-day percentage gains in more than two-and-a-half years. On the other hand, Facebook’s shares initially decline on news of the Federal Trade Commission investigating the company’s data practices, before closing 0.4% higher.
How did the Benchmarks Fare?
The Dow Jones Industrial Average (DJI) rallied 2.8%, or 669.4 points, to close at 24,202.60, its biggest single-day percentage gain since August 2015 and its third best point gain in history. The S&P 500 surged 2.7% to close at 2,658.55, nearing its 200-day moving average. The Nasdaq Composite Index closed at 7220.54, advancing 3.3%, with both Amazon.com Inc. (AMZN - Free Report) and Apple Inc.’s (AAPL - Free Report) shares increasing. Advancers outnumbered decliners on the NYSE by a 2.43-to-1 ratio. On Nasdaq, a 1.82-to-1 ratio favored advancing issues.
Fears of U.S.-China Trade War Ease
Markets were gripped by fears of an ensuing trade war between the United States and China after President Donald Trump imposed tariffs of as much as $60 billion of Chinese imports. Consequently, China too announced plans for reciprocal tariffs on $3 billion of imports from the United States.
However, the United States requested China to slash tariffs on U.S. autos, buy more semiconductors and give U.S firms more access to the Chinese financial sector, in a letter last week. Subsequently, Chinese Premier Li Keqiang came up with a positive response.
On Monday, Keqiang said China would give equal treatment to both domestic and foreign companies. He also said that he won’t force foreign firms to enter into technology transfer agreements. China would also work toward strengthening intellectual property rights, Keqiang added.
China has also expressed its desire to buy more semiconductors from the United States in order to help cut its trade surplus with the United States. As a result of these developments, all three major benchmarks postied their biggest single-day gains in more than two-and-a-half years. Shares of Qualcomm Incorporated (QCOM - Free Report) and Intel Corporation (INTC - Free Report) increased 4.6% and 6.3%, respectively. Intel sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Facebook Continues to Bleed, Tech Stocks Gain
Shares of Facebook, Inc. fell once again on news that the Federal Trade Commission is investigating its privacy practices. However, the social media giant managed to bounce back and close 0.4% higher. Facebook has been weighing on the tech sector ever since the Cambridge Ananlytica data misuse scandal came to light last week. On Monday, Facebook’s stock hit a session low of $149, erasing its market capitalization by $100 billion in just a week.
However, other tech stocks rebounded from the losses made in the previous session and were among the top performing industry groups on Monday. Shares of Microsoft Corporation (MSFT - Free Report) and Netflix, Inc. (NFLX - Free Report) rallied 7.6% and 6.5%, respectively. Apple’s shares rose 4.8%, while Amazon jumped 4%. Financial shares also notched up strong gains with the Financial Select Sector SPDR (XLF) up 3.3%. This represents its largest one-day gain since November 2016.
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Stock Market News For Mar 27, 2018
Markets staged a powerful rebound on Monday after registering strong losses in the previous session, with stocks rising sharply, as tensions of an ensuing trade war between the United States and China appeared to ease. As a result all three major indices posting their best one-day percentage gains in more than two-and-a-half years. On the other hand, Facebook’s shares initially decline on news of the Federal Trade Commission investigating the company’s data practices, before closing 0.4% higher.
How did the Benchmarks Fare?
The Dow Jones Industrial Average (DJI) rallied 2.8%, or 669.4 points, to close at 24,202.60, its biggest single-day percentage gain since August 2015 and its third best point gain in history. The S&P 500 surged 2.7% to close at 2,658.55, nearing its 200-day moving average. The Nasdaq Composite Index closed at 7220.54, advancing 3.3%, with both Amazon.com Inc. (AMZN - Free Report) and Apple Inc.’s (AAPL - Free Report) shares increasing. Advancers outnumbered decliners on the NYSE by a 2.43-to-1 ratio. On Nasdaq, a 1.82-to-1 ratio favored advancing issues.
Fears of U.S.-China Trade War Ease
Markets were gripped by fears of an ensuing trade war between the United States and China after President Donald Trump imposed tariffs of as much as $60 billion of Chinese imports. Consequently, China too announced plans for reciprocal tariffs on $3 billion of imports from the United States.
However, the United States requested China to slash tariffs on U.S. autos, buy more semiconductors and give U.S firms more access to the Chinese financial sector, in a letter last week. Subsequently, Chinese Premier Li Keqiang came up with a positive response.
On Monday, Keqiang said China would give equal treatment to both domestic and foreign companies. He also said that he won’t force foreign firms to enter into technology transfer agreements. China would also work toward strengthening intellectual property rights, Keqiang added.
China has also expressed its desire to buy more semiconductors from the United States in order to help cut its trade surplus with the United States. As a result of these developments, all three major benchmarks postied their biggest single-day gains in more than two-and-a-half years. Shares of Qualcomm Incorporated (QCOM - Free Report) and Intel Corporation (INTC - Free Report) increased 4.6% and 6.3%, respectively. Intel sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Facebook Continues to Bleed, Tech Stocks Gain
Shares of Facebook, Inc. fell once again on news that the Federal Trade Commission is investigating its privacy practices. However, the social media giant managed to bounce back and close 0.4% higher. Facebook has been weighing on the tech sector ever since the Cambridge Ananlytica data misuse scandal came to light last week. On Monday, Facebook’s stock hit a session low of $149, erasing its market capitalization by $100 billion in just a week.
However, other tech stocks rebounded from the losses made in the previous session and were among the top performing industry groups on Monday. Shares of Microsoft Corporation (MSFT - Free Report) and Netflix, Inc. (NFLX - Free Report) rallied 7.6% and 6.5%, respectively. Apple’s shares rose 4.8%, while Amazon jumped 4%. Financial shares also notched up strong gains with the Financial Select Sector SPDR (XLF) up 3.3%. This represents its largest one-day gain since November 2016.