U. S. stocks rebounded on Tuesday, boosted by gains in industrial shares following reports of renewed trade negotiations between the United States and China.
NEW YORK (Reuters) – U. S. stocks rebounded on Tuesday, boosted by gains in industrial shares following reports of renewed trade negotiations between the United States and China.
Both the S&P 500 and the Dow Jones Industrial Average posted their biggest monthly percentage gains since January, when markets hit peak levels.
The markets were buoyed by a Bloomberg report bloom.bg/2mZgU3V that U. S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are exploring ways to cool down the tariff war brewing between the world’s two largest economies.
The trade-sensitive industrial sector. SPLRCI led the S&P 500 and the Dow industrials higher, rising 2.1 percent a day after a broad sell-off in technology stocks pulled markets lower.
“It’s a little bit of buying the dip. We’ve seen it before,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “What has happened in the past is … the market would rebound three or four weeks later and hit all-time highs again.”
Apple Inc ( AAPL. O) shares were up over 2 percent in aftermarket trading after posting results that topped Wall Street expectations, driven by sales of higher-priced iPhones.
Investors are eyeing the stock’s advance as the company closes in on $1 trillion in market value.
The U. S. Federal Reserve meets this week and is expected to leave interest rates unchanged, but robust economic data and rising inflation will likely keep it on track for two more rate hikes this year.
