Stock Market Close: Strength In Tech Sector Sends Markets Higher; Apple, Alphabet, Facebook, Intel all higher
Tech, healthcare and utility shares pushed stock prices higher Wednesday as investors mulled China’s decision to exempt 16 U.S. products from tariffs ahead of the next round of talks aimed at ending the U.S.-China trade war.
At the close, the Dow Jones Industrial Average rose 226.6 points higher or 0.84%. The Nasdaq gained 85.52 points or 1.06% while the S&P 500 added 21.3 points or 0.72%.
Volume on the New York Stock Exchange was nearly 3.2 billion shares, with 2,023 issues advancing and 926 declining. AT&T (T), General Electric (GE) and Advanced Micro Devices (AMD) led the most actives.
Facebook (FB), Alphabet (GOOG) and Intel (INTC) all showed gains but disappointing earnings from Dave & Buster’s Entertainment (PLAY) and GameStop (GME) pushed those issues lower. Apple ( AAPL ) shares moved higher following Tuesday’s product announcements and revelations Apple TV+ would be available for $4.99 a month -- and free for a year for anyone buying a new phone or other Apple product.
China issued tariff exemptions on 16 products, including fish meal and cancer drugs but kept levies in place for pork, soybeans and other agricultural and manufacturing products. The trade war with the U.S. has been weighing on the Chinese economy, which is in a growth slump. The U.S. imposed tariffs on hundreds of billions of dollars in Chinese goods and Beijing retaliated, targeting more than 5,000 U.S. products.
Wednesday’s announcement comes ahead of low-level talks between the world’s two largest economies in coming days and a planned high-level meeting in early October.
A panel of Scottish judges delivered another blow to British Prime Minister Boris Johnson's no-deal Brexit strategy, declaring the suspension of Parliament illegal. The government is expected to appeal the ruling to the Supreme Court next week. Parliament currently is scheduled to return Oct. 14, a scant two weeks ahead of the Oct. 31 Brexit deadline.
The Hong Kong Exchanges & Clearing Ltd. made an unsolicited $36.6 billion offer to buy its London counterpart on condition the LSE’s bid to acquire Refinitiv Holdings Ltd. falls through. A merger between two of the world’s major trading hubs could take the spotlight off political unrest in the Chinese territory and Brexit maneuvering.
Charles Li, chief executive of the Hong Kong exchange, told a conference call the offer had nothing to do with ongoing protests in Hong Kong. The LSE said it would consider the offer but still is committed to the Refinitiv deal.
Global markets were mostly higher. In Asia, Hong Kong’s Heng Seng closed up 475.38 points or 1.78%. Japan’s Nikkei 225 added 205.66 points or 0.96% while China’s Shanghai Composite was off 12.39 points or 0.41%. Australia’s S&P/ASX added 23.9 points or 0.36%.
In Europe, The London FTSE closed up 70.08 points or 0.96%. The German DAX gained 90.36 points or 0.74% and the French CAC was up 24.85 points or 0.44%.
Crude oil futures fell 2.5% after President Trump said sanctions on Iran might be eased. Gold and silver futures ended higher, up 0.37% and 0.13%, respectively.
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