U.S. Stocks Hit Record Levels After Trump, Xi Bury the Hatchet on Trade
The Dow and broader U.S. stock market rose toward records on Monday after President Trump and China’s Xi Jinping reached an agreement to restart trade negotiations nearly two months after talks broke down. In alternative markets, bitcoin lurched toward $10,000 after a mysterious trader unloaded 20,000 units of the virtual currency over the weekend.
Dow Rises; S&P 500, Nasdaq Follow
All of Wall Street’s top indexes finished in positive territory at the start of the week. The Dow Jones Industrial Average climbed 117.47 points, or 0.4%, to 26,717.43. The blue-chip index reached an intraday peak of 26,890.60, which would have marked a new all-time high.
The broad S&P 500 Index of large-cap stocks climbed 0.8% to 2,964.34, a new record high. Nine of 11 primary sectors finished higher, with information technology leading the way.
Surging technology shares propelled the Nasdaq Composite Index sharply higher. The benchmark rose 1.1% to close at 8,091.16.
U.S., China to Resume Trade Talks
The United States and China have agreed to restart trade negotiations following a face-to-face meeting between heads of state on Saturday.
President Trump and Chinese counterpart Xi Jinping have agreed to halt trade-war hostilities and return to the negotiating table immediately. China scored a major concession in the deal after President Trump said he would allow American companies to continue doing business with Huawei, the Chinese telecommunications giant that was blacklisted by Washington last month.
Last week, U.S. Treasury Secretary Steven Mnuchin said the two countries were about “90% of the way” to reaching a new agreement, but didn’t offer specifics on what the sticking points were. Talks broke down in early May after China reportedly backed away from a deal, which led the Trump administration to implement harsher tariffs.
Bitcoin’s Downward Correction
Bitcoin extended its sharp reversal on Monday, dragging the overall cryptocurrency market down with it. The bitcoin price briefly traded below $10,000 on Bitstamp before regaining that pivotal mark later in the session. According to CoinMarketCap’s aggregate data feed, bitcoin’s price was last down 10.1% at $10,117.
The sharp correction may have been triggered by a short-seller who unloaded 20,000 BTC on Bitfinex over the weekend. Read more: Massive Bitcoin Short Order Triggers Another $20 Billion Correction for Cryptocurrencies.
Bitcoin is down nearly a quarter from last week’s 17-month peak. The total cryptocurrency market has lost $89 billion over that stretch. The total market was last seen hovering just north of $297 billion. With the exception of Tether (USDT), all major coins reported losses.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via Stockcharts.com and CoinMarketCap.