Stocks rebounded from recent weakness Tuesday as investors kept a watchful eye on trade relations between the U.S. and China. The Dow jumped 207 points, while the S&P 500 is climbed 0.8%. The Nasdaq Composite advanced 1.1%.
Positive commentary from President Trump provided a tailwind to stocks, as he suggested trade discussions with China will be “very successful.” President Trump also announced plans to meet with Chinese President Xi Jinping at the upcoming G-20 summit. Today’s strong gains followed Monday’s session in which the Dow and S&P 500 both suffered their worst daily decline since January 3, sliding 2.4% each.
The Technology sector, which suffered sharp losses in the prior session, paced the gains as the group added roughly 1.6%. Industrials also rebounded as Caterpillar advanced 1.7% to $127.47 and Boeing climbed 1.7% to $343.04. In corporate news, shares of Walt Disney rose 1.4% to $133.23 on news the media giant will assume full operational control of online streaming service Hulu.
On the data front, an update showed small business optimism improved last month. Separately, import and export prices both edged 0.2% higher in April, below consensus expectations. Treasuries were modestly lower, with the yield on the 10-year note adding one basis points to 2.41%. In commodities, WTI crude gained 1.1% to $61.71/barrel amid reports of drone attacks on Saudi pipelines. COMEX gold was off 0.3% to $1,297.70/ounce amid a stronger dollar.
Breadth was positive on issues by 7:2 on the NYSE and by 11:4 on the Nasdaq. Composite NYSE volume totaled more than 3.2 billion shares.