(Reuters) – U.S. stocks surged on Monday, building on previous
session’s rally, fueled by growing hopes that major economies would act
to prop up slowing growth, while technology stocks got a lift from trade
optimism.
China’s central bank unveiled a key interest rate reform on Saturday
to help steer borrowing costs lower for companies, close on the heels of
reports of a potential German economic easing.
After the three main Wall Street indexes racked up their third
straight weekly loss despite Friday’s bounce, investors will look to
weigh trade risks and signs of slowing growth against the potential for
more action from the U.S. Federal Reserve and others in September.The focus this week will be on Wednesday’s release of minutes from the
Fed’s July policy meeting, when the central bank cut rates for the
first time in more than a decade, and Chair Jerome Powell’s speech at a
central banks meeting in Jackson Hole on Friday.
“There is hope you are going to see some sort of stimulus by the
United States … Some believe the selloff recently was a bit overdone,”
said Scott Brown, chief economist at Raymond James in St. Petersburg,
Florida.
Shares of Apple Inc provided the biggest boost to the
three main Wall Street indexes. President Donald Trump said on Sunday
that he had spoken with Apple Chief Executive Tim Cook about the impact
of U.S. tariffs.
“There is a recognition that this trade policy is having a negative
impact on the economy. With the election coming up next year, there
maybe an incentive to get these trade issues behind. Trump does seem to
listen if the voices are loud enough,” Brown said.
Adding to the optimism around trade, Washington extended a reprieve
given to Huawei Technologies that permits the Chinese firm to buy
supplies from U.S. companies.
Tariff-sensitive chipmakers gained with the Philadelphia chip index <.SOX> up 2.06%.
At 11:06 a.m. ET, the Dow Jones Industrial Average <.DJI> was
up 260.43 points, or 1.01%, at 26,146.44, the S&P 500 <.SPX>
was up 34.36 points, or 1.19%, at 2,923.04. The Nasdaq Composite
<.IXIC> was up 112.95 points, or 1.43%, at 8,008.95.
https://www.oann.com/futures-jump-on-growing-stimulus-hopes/
