Markets Right Now: Stocks soar on trade, rate cut hopes
NEW YORK (AP) — The latest on developments in financial markets (all times local):
Hopes for a cut in interest rates and for a resolution in the U.S.-Mexico trade dispute are propelling stocks higher at midday Tuesday.
The Dow Jones Industrial Average jumped nearly 400 points, while a rebound in technology shares helped the Nasdaq recover steep losses from Monday.
The chairman of the Federal Reserve signaled the central bank could cut rates if multiple U.S. trade conflicts threaten the U.S. economic expansion. Meanwhile, Mexico’s foreign minister said he expects his country to make a trade deal with the U.S. and avoid tariffs.
Apple gained 2.9% and Microsoft rose 2.1%. Nvidia added 5.2% as chipmakers posted some of the strongest gains.
The Dow rose 386 points, or 1.6%, to 25,205.
The S&P 500 index added 40 points, or 1.5%, to 2,785 and the Nasdaq gained 133 points, or 1.8%, to 7,466.
Stocks are rising Tuesday as technology companies recover from steep losses a day before.
Investors continue to watch developments on the trade front. Mexico’s foreign minister said he expects the two sides to reach an agreement and avoid a 5% tariff on Mexican goods.
Apple rose 1% while Advanced Micro Devices gained 1.7%. Bank stocks gained as the yield on the 10 year Treasury rose to 2.13% from 2.08%. Wells Fargo gained 1.6%.
Tiffany shares rose 3.4% after the jewelry company topped estimates with its fiscal first quarter profit.
The Dow Jones industrials rose 228 points, or 0.9%, to 25,047.
The S&P 500 index added 23 points, or 0.9%, to 2,768 and the Nasdaq gained 69 points, or 0.9%, to 7,402.