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18.06.2019 17:55:46 - dpa-AFX: U.S. Stocks Holding On To Strong Gains After Early Rally

WASHINGTON (dpa-AFX) - After moving sharply higher early in the session,
stocks continue to see significant strength in mid-day trading on Tuesday. With
the rally on the day, the major averages have reached their best intraday levels
in over a month.

Currently, the major averages are off their highs but holding on to strong
gains. The Dow is up 350.96 points or 1.3 percent at 26,463.49, the Nasdaq is up
134.35 points or 1.7 percent at 7,979.38 and the S&P 500 is up 33.06 points or
1.1 percent at 2,922.73.

Stocks extended an initial move to the upside after President Donald Trump said
in a post on Twitter that he had a 'very good' telephone conversation with
Chinese President Xi Jinping and will have an 'extended meeting' at the G20
summit next week.

'Had a very good telephone conversation with President Xi of China. We will be
having an extended meeting next week at the G-20 in Japan. Our respective teams
will begin talks prior to our meeting,' Trump tweeted.

The tweet from Trump has led to renewed optimism that the U.S. and China could
finally reach an agreement to end their long-running trade dispute.

Trump had previously threatened to raise tariffs on another $300 billion worth
of Chinese goods if Xi did not attend the G20 summit.

The president's tweet added to the positive sentiment surrounding Wall Street
amid optimism that the Fed will strike a dovish tone in its statement announcing
its latest monetary policy decision on Wednesday.

The Fed is widely expected to leave interest rates unchanged but could signal
plans to cut rates as soon as its next meeting at the end of July.

Optimism about a potential rate cut has helped to prop up the markets ever since
Fed Chairman Jerome Powell pledged to act 'as appropriate' to support the U.S.
economic expansion.

Trump has been urging the Fed to lower rates and may ramp up pressure on the
central bank after European Central Bank President Mario Draghi suggested he
could provide additional stimulus.

Noting the subsequent drop in the value of the euro against the U.S. dollar,
Trump called Draghi's comments 'unfair' to the U.S., adding, 'They have been
getting away with this for years, along with China and others.'

Sector News

Semiconductor stocks continue to turn in some of the market's best performances
amid optimism about a potential U.S.-China trade deal. Reflecting the strength
in the sector, the Philadelphia Semiconductor Index has surged up by 4.3
percent.

Chipmakers have recently warned about the impact of the U.S.-China trade dispute
and restrictions on Chinese tech giant Huawei.

Substantial strength also remains visible among steel stocks, as reflected by
the 3.6 percent jump by the NYSE Arca Steel Index. The index has reached its
best intraday level in over a month.

Oil service, computer hardware, and networking stocks are also seeing
considerable strength on the day, moving higher along with most of the other
major sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly
higher on Tuesday, although Japan's Nikkei 225 Index bucked the uptrend and slid
by 0.7 percent. Hong Kong's Hang Seng Index jumped by 1 percent, while China's
Shanghai Composite Index inched up by 0.1 percent.

The major European markets showed strong moves to the upside on the day. While
the U.K.'s FTSE 100 Index surged up by 1.2 percent, the German DAX Index and the
French CAC 40 Index soared by 2 percent and 2.2 percent, respectively.

In the bond market, treasuries have pulled back off their best levels but remain
positive. As a result, the yield on the benchmark ten-year note, which moves
opposite of its price, is down by 3.2 basis points at 2.053 percent after
hitting a two-year low of 2.029 percent.

Copyright RTT News/dpa-AFX
Name WKN Börse Kurs Datum/Zeit Diff. Diff. % Geld Brief Erster Schluss
Dow Jones 969420 DOW JONES INDIZES 26.816,59 11.10.19 23:00:37 +319,92 +1,21% 26.751,07 26.901,64 26.694,20 26.816,59
NASDAQ COMP. 969427 NASDAQ INDIZES 8.057,04 11.10.19 23:16:01 +106,26 +1,34% - - 8.047,34 8.057,04

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