U.S. stocks kicked off Tuesday with notable gains, igniting optimism among investors as promising progress in ongoing trade talks between the U.S. and the Chinese mainland eased worries about global economic tensions. The Dow Jones Industrial Average surged by 105.11 points (0.25%), closing at 42,866.87, while the S&P 500 added 32.93 points (0.55%) to finish at 6,038.81. The Nasdaq Composite Index also climbed by 123.75 points (0.63%), wrapping up the session at 19,714.99.
The market rally was broad-based: 10 out of the 11 primary S&P 500 sectors ended in the green. Energy and consumer discretionary stocks led the charge with increases of 1.77% and 1.19% respectively, while industrials saw a slight dip of 0.44%.
High-profile stocks shined as well. Tesla shares leaped 5.67% as the electric vehicle maker bounced back from a recent downturn, while tech giants such as Alphabet, Meta Platforms, and Apple also reported healthy gains. Jay Woods, chief global strategist at Freedom Capital Markets, noted, "Technically, shares have been on a nice run, eclipsing key levels and getting back on track," echoing the overall market optimism. 🚀
Despite the upbeat sentiment, caution remains on the horizon. The World Bank recently projected U.S. economic growth to slow to 1.4% in 2025—down from 2.8% in 2024. Analysts at HSBC also urged vigilance, pointing out that while global equities might continue to rise in the near term, medium-term risks could create an unbalanced risk/reward scenario.
All eyes are now on future trade negotiations between the U.S. and the Chinese mainland, as investors hope for further progress that could help stabilize and boost global market ties.
Reference(s):
cgtn.com
