Investing.com – Shares ended Tuesday after President Donald Trump announced he is planning to meet with Chinese President Xi Jinping to resolve their trade dispute.
In addition, the pressure to move US interest rates has risen lower after the head of the European Central Bank said he was prepared to lower interest rates to support the European economy.
The rally led to within 1.3% of a new high in a rally pushed by big tech stocks and Boeing (NYSE :).
S & P 500 rose 1
The rally was initiated by ECB President Mario Draghi's statement that the bank was prepared to cut interest rates to avert any recession among Europeans
It took off later when Trump said he was planning an extensive meeting with Xi G20 meeting this month in Tokyo. The US and China have been locked in a bitter trade conflict for more than a year, which has included tariff increases and roiled economies worldwide and lowered oil prices.
The two messages helped US interest rates fall lower, although Trump accused Draghi of currency manipulation. It dropped to 2.06% on Tuesday, down more than a fifth this year alone and the lowest level since November 8, 2016.
The Federal Reserve meets Tuesday and will announce a tariff decision Wednesday afternoon. Investing.com's Fed Rate Monitor Tool suggests a 73% chance that the central bank will leave its central Federal Funds rate of 2.25% to 2.5%, and more than 80% chance levels will be cut in July.
Boeing was the fifth best S & P 500 performer and top Dow stock. Boeing jumped 5.4% and contributed nearly 37% of Dow's 353-point win after an order for his troubled 737 Max jet at the Paris Air Show.
Apple (NASDAQ :), an increase of 2.4% and Microsoft (NASDAQ :), an increase of 1.7%, contributed 29.8% of Nasdaq 100's gain of 109 points a day.
The Allies were the largest for S & P 500 and Dow since June 4 and the largest for Nasdaq since June 7. S & P 500 is 16.4% this year. Dow is 13.5% and Nasdaq is 19.9%.
Trade and interest rates are compensated for mixed housing news in May. Starter was higher than expected, but turned off a little in the month. The estimates for March and April were revised higher. Building permits were higher. The US housing is expected to be strong this year thanks to lower mortgage rates, but most demand comes from first-time buyers struggling with affordable issues.
Oil prices were higher on trade and interest news and a report by The Wall Street Journal that Saudi Arabia is pushing OPEC and OPEC plus members to continue to cover production for the rest of the year. ] NYSE 🙂 and Exxon Mobil (NYSE 🙂 were 1.3% and 0.9%, respectively. It climbed 2.8%. was up 3.8% to $ 53.90 a barrel. The global benchmark rose by 2% to $ 62.14 per day. barrel.
Oil prices have fallen significantly from their April heights because US oil production is rising, and there are signs that many OPEC members are not complying with the oil production cut agreement.
Winners and losers in S & P 500
Xilinx (NASDAQ :), Micron Technology (NASDAQ 🙂 and Qorvo (NASDAQ 🙂 were among the best S & P 500 artists of the day.
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