Stocks rose on Monday as investors hoped that US President Donald Trump would not launch a trade war.
The Dow Jones Industrial Average is up by 1.4% and the Nasdaq Composite has risen 2.2%.
Tesla’s stock jumped more than 9%. This extended Friday’s rally, and ended a losing streak of nine weeks. Meta and Nvidia both soared over 3%.
Investors are still concerned about the potential for a slowdown of US economic growth.
Positive developments
David Morrison is a senior analyst with Trade Nation. He said that the positive start to 2018 was made possible by President Trump’s more conciliatory approach towards existing tariffs and future threats.
US threatened to implement reciprocal tariffs which will take place early next month.
This week, President Trump will discuss these tariffs with Chinese president Xi Jinping.
It also seems that the reciprocal tariffs will not be as “random” and “scattergun” as first seemed. The markets have stabilized after a nearly month-long selling off that saw the S&P 500 as well as the NASDAQ fall into correction territory.
Last week, Federal Reserve chair Jerome Powell reassured investors that Trump’s tariffs will likely have only a temporary impact.
In April, the Fed announced it would lower its monthly sale of Treasuries, from $25 billion down to $5 billion. This will slow its balance sheet’s runoff.
Morrison added
The message sent to the market is more important than the pressure it will relieve on the bond markets. The Fed’s dovishness was perceived to be greater than anticipated.
Stocks like Meta, Nvidia and AMD are rising.
On Monday, tech stocks saw a revival after years of declining prices.
Tesla, which was on a losing streak of nine weeks, experienced a nearly 10% rise.
The positive trend in the market indicated a possible shift of investor attitude towards electric vehicles manufacturers.
The trend has continued to rise with other prominent technology companies.
Meta and Advanced Micro Devices saw both their shares increase by 3% and 7 % respectively. This shows renewed confidence in the prospects of these companies.
NVIDIA also experienced a gain of 3.7%, indicating that investors are optimistic about its ability to handle the current market conditions.
Positive momentum also extended to other technology giants. Apple, Amazon and Alphabet, the parent company of Google, all experienced a rise in their premarket shares.
The broad rally in the technology sector was a sign that it is experiencing a recovery. This could be due to a number of factors, including positive earnings reports and favorable economic indicators.
Pinterest shares jump
Pinterest’s stock has experienced an increase in value. The social media platform allows its users to share and discover visual content.
Analysts at Guggenheim upgraded the stock from “neutral to “buy”, resulting in a nearly 5% increase.
The upgrade shows that Pinterest is confident about its future growth and performance.
AZEK shares soared by 23% after it was announced that James Hardie Industries would buy the outdoor product manufacturer for $9 billion in cash and stocks.
The post Dow and S&P 500 rise on hope of a softer US Tariff stance, Tesla and AZEK surge as tech stocks gain, may be updated with new information.
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