- PBoC introduced fresh stimulus via 50 bps RRR cut.
- Technology shares lead rally on first trading day of year.
- US Pres. Trump is set to sign the phase-one deal on January 15th.
Wall Street’s main indexes started the first trading day of 2020 decisively higher on heightened hopes of the global economic recovery gathering momentum after the People’s Bank of China’s (PBOC) decision to cut the Reserve Requirement Ratio (RRR) by 50 basis points to inject more than $100 billion into the economy.
Moreover, US President Donald Trump on Tuesday announced that he will be signing the phase-one of the trade deal with China on January 15th to help the market sentiment remain positive.
The S&P 500, which rose 28.9% in 2019, was last up 0.53% on the day. The Nasdaq Composite and the Dow Jones Industrial Average, which rose 35% and 22.3% annually, were adding 1% and 0.55%, respectively.
Among the 11-major S&P 500 sectors, the Technology Index was up 1.15% to lead the rally. On the other hand, the so-called defensive sectors, Utilities, Healthcare and Consumer Staples, were posting modest losses in the early trade.
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