- Bloomberg reports on possible US-China meeting
- S&P 500 Industrials subsequently trades 2% higher
- S&P 500, Nasdaq and Dow Jones also end the day higher
The biggest US stock exchanges began yesterday on a strong note, with new trade headlines strengthening market sentiment. For example, the CBOE Volatility Index, which is widely regarded as a measure of anxiety on Wall Street, fell by 10%. This is a good indication of increased appetite for risk-sensitive investments.
Earlier yesterday, a Bloomberg report claimed that US Treasury Secretary Steven Mnuchin was engaged in dialogue with Chinese envoy Liu He to arrange a formal meeting before the end of the week. This might create the perfect chance for both parties to avoid more trade conflict and thereby reduce the uncertainty that has been plaguing global markets recently.
After the news emerged, the S&P 500 Industrials Index strengthened more than 2% and became the top-performing sector on the final day of the month.
The S&P CoreLogic Case-Shiller, meanwhile, announced a 6.4% annual increase in the United States National Home Price NSA Index for May. The S&P 500 Real Estate Index went up by 1.9%, strengthened by this news.
Elsewhere in the market, a modest recovery in tech stocks hampered the telecom sector, which had reported robust gains recently because it was seen as an alternative to technology stocks. The S&P 500 Telecom Services Index retreated by 0.77%.
The Dow Jones Industrial Average also ended stronger yesterday, adding 0.43% or 108.36 points to close at 25,415.19. The S&P 500 strengthened by 0.5% or 13.67 points to 2,816.27, while the Nasdaq Composite Index ended the day 0.55% or 41.79 points higher at 7,671.79.
Over the last month, these three indices have increased by 4.7%, 3.6% and 2.2% respectively.