Markets ended sharply higher on Tuesday, led by a rally in tech and energy stocks, as trade war fears continued to linger. The tech rally was led by Apple, while a gain of more than 2% in oil helped energy stocks. This saw all three major indexes ending in positive territory, with Dow climbing by triple digits.
The Dow Jones Industrial Average (DJI) rose 0.4%, to close at 25,971.06. The S&P 500 advanced 0.4% to close at 2,887.89. The Nasdaq Composite Index closed at 7,972.47, rising 0.6%. A total of 6.3 billion shares were traded on Tuesday, higher than the last 20-session average of 6.1 billion shares. Advancers outnumbered decliners on the NYSE by a 1.06-to-1 ratio. On Nasdaq, a 1.15-to-1 ratio favored declining issues.
How did the Benchmark Perform?
The Dow added 113.99 points, ending its two-day losing streak. The rally was led by Apple, Inc. (AAPL - Free Report) and Exxon Mobil Corporation (XOM - Free Report) . Shares of Apple jumped 2.5%, while Exxon Mobil and Chevron Corporation (CVX - Free Report) gained 1.4% and 0.5%, respectively. Apple has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The S&P 500 gained 10.76 points, helped by tech and energy stocks. The Energy Select Sector SPDR (XLE) and Technology Select Sector SPDR ETF (XLK) gained 1% and 0.9%, respectively. The tech heavy Nasdaq added 48.31 points, with most tech giants gaining. Shares of Facebook, Inc. (FB - Free Report) gained 1.1%, while Microsoft Corporation (MSFT - Free Report) increased 1.7%.
Tech and Energy Stocks Drive Markets
Tech stocks rebounded on Monday after declining more than 3% last week. The rally continued on Tuesday, with megacaps emerging as some of the best performers. Apple snapped a four-day losing streak and emerged one of the biggest gainers on Tuesday. Gains for Apple came a day ahead of its annual iPhone event. The company is likely to announce a new range of products including a new version of Apple Watch. Other tech stocks too rallied, with shares of Facebook, Microsoft, Netflix, Inc. (NFLX - Free Report) and Amazon.com, Inc. (AMZN - Free Report) all rallying.
Energy stocks too helped markets after a 2% gain in oil prices pushed up energy stocks. Oil prices increased after U.S. sanctions on Iran contracted crude exports and tightened global supplies.
Trade War Fears Linger
Markets finished in positive territory although trade war fears continued to make investors jittery. On Friday, Trump had said that the United States is ready to move ahead with tariffs on another $267 billion worth of Chinese goods. Trump’s fresh threats once again raised fears of a trade war between the United States and China.
On Tuesday, China said that it would retaliate and plans to take authorization from the World Trade Organisation to slap sanctions against the United States. These unresolved issues added to the growing trade tensions between the world’s two largest economies and continued to dog markets on Tuesday. This saw markets opening lower on Tuesday, with shares of The Boeing Company (BA - Free Report) and Caterpillar (CAT - Free Report) declining earlier in the session.
On the other hand, the National Federation of Independent Business reported that small business optimism soared to a record high last month, driven by lower tax and looser regulations. Despite impressive data, growing trade war fears continued to dent investors’ confidence.
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