Stocks - Wall Street Surges on News of U.S.-China Trade Talk

Jul 31, 2018

Wall Street surged on Tuesday, amid reports that China and the U.S. were restarting trade talks.

The S&P 500 rose 11 points, or 0.41%, to 2,814.00 as of 9:37 AM ET (13:37 GMT), while the Dow increased 118 points, or 0.47%, to 25,425.20 and the tech-heavy Nasdaq Composite gained 50 points, or 0.66%, to 7,680.43.

The U.S. and China could resume trade talks to prevent a trade war, Bloomberg reported. The two largest economies in the world have remained in a tit-for-tat battle over the past few months due to trade disagreements.

Meanwhile, Apple (NASDAQ:AAPL) is the main corporate event of the day, with the largest company by market cap expected to report its earnings after the closing bell. Traders will be looking closely to iPhone unit sales in addition to top- and bottom-line numbers. Apple Inc.ed up 0.09% after the morning bell.

Investors are also waiting for a flurry of central bank policy decisions this week. The Federal Reserve makes a policy decision Wednesday afternoon, but with no rate hike expected. Investors expect the Fed to raise rates in September, with the chance of an increase at 87.8%.

Technology stocks rallied on Tuesday, with Facebook (NASDAQ:FB) up 0.53% and Twitter (NYSE:TWTR) gaining 1.18%. Elsewhere, Caterpillar (NYSE:CAT) increased 1.45%, while Boeing (NYSE:BA) rallied 1.47%.

Chipotle Mexican Grill (NYSE:CMG) fell 3.36%, while Pfizer (NYSE:PFE) inched down 0.08% after it lowered its 2018 revenue forecast.

In Europe, stocks were up. Germany’s DAX surged 13 points, or 0.10%, while in France the CAC 40 increased 29 points, or 0.53%, and in London, the FTSE 100 was up 76 points, or 0.99%. Meanwhile, the pan-European EURO STOXX 50 gained 13 points, or 0.40%, while Spain’s IBEX 35 rose 35 points, or 0.36%.

In commodities, Gold futures inched up 0.04% to $1,221.80 a troy ounce, while crude oil futures decreased 1.57% to $69.03 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, rallied 0.03% to 94.17.