Global markets got a lift on Tuesday as optimism around ongoing trade talks between the United States and the Chinese mainland fueled hopes for easing economic tensions.
Wall Street rallied across the board. The Dow Jones Industrial Average climbed 105.11 points (0.25%) to 42,866.87, while the S&P 500 jumped 32.93 points (0.55%) to 6,038.81. The Nasdaq Composite added 123.75 points (0.63%), finishing at 19,714.99.
Energy and consumer discretionary stocks led the charge, rising 1.77% and 1.19% respectively. Most sectors finished in the green, with industrials as the lone laggard, slipping 0.44%.
“Technically, shares have been on a nice run, eclipsing key levels to get back on track,” says Jay Woods, chief global strategist at Freedom Capital Markets. “Longer-term, they started the week right above their downtrend line back to annual highs.”
Investors cheered tech giants as well. Tesla surged 5.67%, extending a rebound after recent volatility tied to a high-profile dispute between Elon Musk and former U.S. President Donald Trump. Alphabet and Meta Platforms each gained more than 1%, while Apple recovered 0.61%.
Yet amid the rally, the World Bank cautioned that U.S. growth could slow to 1.4% in 2025, down from 2.8% this year, highlighting risks from trade uncertainty. HSBC strategists added that although equities may climb in the near term, medium-term risk/reward looks “more unbalanced” once recession fears are fully priced out.
As investors weigh trade diplomacy against economic forecasts, all eyes remain on the next round of data and negotiations that will shape markets worldwide.
Reference(s):
cgtn.com
