Major US equity indices started a new week on a strong footing as investors cheered easing US-China trade tensions.
The Trump administration would delay implementing tariffs on Chinese goods and “put the trade war on hold”, the US Treasury Secretary Steven Mnuchin said over the weekend. The cooling of tensions between the world’s two largest economies was seen as one of the key factors driving the markets higher during the opening hour of trade on Monday.
There aren’t any major market-moving economic releases due from the US and hence, speeches by influential FOMC members would now drive investors’ sentiment surrounding riskier assets – like equities. A slew of Fed speakers kicks off with Atlanta Fed President Raphael Bostic, which will be followed by Philadelphia Fed President Patrick Harker and Minneapolis Fed President Neel Kashkari.
In the meantime, elevated US Treasury bond yields, with the 10-year note yield still holding above the 3% psychologically important level, closer to a seven-year high touched on Friday, might further contribute towards capping gains as it makes stocks less attractive to investors.
At the time of writing this report, the Dow Jones Industrial Average surged over 300-points and jumped back above the 25K mark. Meanwhile, the broader S&P 500 Index rallied round 23-points to 2,736 and tech-heavy Nasdaq Composite Index climbed nearly 75-points to 7,428.
Share
