Wall Street bounces on softer trade tone
By Chuck Mikolajczak NEW YORK (Reuters) - U.S. stocks rose on Monday, as major indexes bounced following a sharp sell-off in the prior session, as U.S
By Chuck Mikolajczak
NEW YORK (Reuters) - U.S. stocks rose on Monday, as major indexes bounced following a sharp sell-off in the prior session, as U.S. President Donald Trump forecast a trade deal with China and somewhat cooled investor concerns after a ramp up in combativeness derailed markets last week.
Trump said after a G7 summit of world leaders in Biarritz, France, that he believed China was sincere about the desire to reach a deal, citing what he described as increasing economic pressure on Beijing and job losses there.
Shares of tariff-sensitive companies rose in response, with Apple Inc's
Chipmakers, which are heavily reliant upon China for revenue, also rose with the Philadelphia Semiconductor index <.SOX> adding 0.66% after dropping more than 4% on Friday.
Still, market participants noted the rebound was less dramatic than the drop in markets last week, and they expected recent volatility to continue.
"Six months ago, those sorts of comments would’ve weighed more heavily so there is some degree of the market looking past it and wanting some proof at this point," said Willie Delwiche, investment strategist at Robert W. Baird in Milwaukee.
"So you’ve got a great deal of uncertainty with Trump, the Fed, the economy and so investors are unsettled and are nervous so it is 'shoot first, ask questions later' kind of mentality right now."
The Dow Jones Industrial Average <.DJI> rose 144.97 points, or 0.57%, to 25,773.87, the S&P 500 <.SPX> gained 17.34 points, or 0.61%, to 2,864.45 and the Nasdaq Composite <.IXIC> added 65.86 points, or 0.85%, to 7,817.63.
Commerce Department data showed new orders for key U.S.-made capital goods rose modestly in July, while shipments fell by the most in nearly three years. The report which could provide the Federal Reserve with more fuel to cut interest rates again next month.
Concerns about the global economy slipping into recession and uncertainty over the pace of U.S. interest rate cuts have created some anxiety about how long the current U.S. expansion will last. The S&P 500 is now off more than 5% from its record high hit in late July after suffering its longest run of weekly declines since May.
Even with broad gains on Monday that saw all 11 S&P 500 sectors rise, Wall Street's fear gauge, the CBOE Volatility index <.VIX>, hit its highest level in more than a week earlier in the session.
Among other stocks, Celgene Corp
Advancing issues outnumbered declining ones on the NYSE by a 1.66-to-1 ratio; on Nasdaq, a 1.74-to-1 ratio favoured advancers.
The S&P 500 posted four new 52-week highs and 17 new lows; the Nasdaq Composite recorded 17 new highs and 134 new lows.
(Reporting by Chuck Mikolajczak; Editing by Lisa Shumaker)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.