- Crude oil rebound boosts energy.
- The U.S. and China agree on a trade-truce.
- Trade-sensitive sectors rally in the early trade.
Major equity indexes in the United States started the week on a positive note with all three major indexes recording strong gains in the first hour of trading. As of writing, the Dow Jones Industrial Average was up 1.65% while the S&P 500 and the Nasdaq Composite were adding 1.35% and 1.75%, respectively.
The U.S. and China agreed on a three-month ceasefire in the trade war following the meeting between President Trump and his Chinese counterpart Xi. Boosted by this development, the trade-sensitive S&P 500 Materials Index and the S&P 500 Industrials Index both opened the day more than 2% higher. Furthermore, with the barrel of West Texas Intermediate gaining more than 5% on the day, the S&P 500 Energy Index is up nearly 2.7%.
Meanwhile, the S&P 500 Real Estate and the S&P 500 Utilities, the so called-defensive sectors, which struggle to find demand in a risk-on atmosphere, are recording modest losses.
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