Close Update: Wall Street Applauds Easing US/China Trade Tensions as Dow Rallies 600 Points

Close Update: Wall Street Applauds Easing US/China Trade Tensions as Dow Rallies 600 Points

Fresh off last week’s carnage, Wall Street erased Friday’s losses as diminished risks of a US/China trade war created buying opportunities for investors. Aided by support at its 200-day moving average and outsized gains in component stocks Intel ( INTC ), Microsoft ( MSFT ) and Apple ( AAPL ), the blue chip index posted its largest one-day gain since Sept 2015, while the Nasdaq Composite, fueled by gains in the tech sector, gained more than 3%, outperforming both the Dow and S&P 500.

Stocks charged higher at the open in response to Treasury Secretary Steven Mnuchin’s “cautiously optimistic” assessment of US/China trade relations along with reports that the US was sending high level officials to hammer out a beneficial trade deal with the world’s second largest economy.

Wall Street sold off briefly on news that Facebook ( FB ) was facing an investigation by the Federal Trade Commission as the fallout from the Cambridge Analytica fiasco continues to plague the social media giant. The major averages cut their early gains by half before an impressive intra-day reversal pushed Facebook back into the green and the Nasdaq above Friday’s high.

In economic news, a pair of indices from the Federal Reserve painted a mixed picture of the economy. The Chicago Fed national activity index rose to 0.88 in February from a downward revised 0.02 in January, well above expectations for an increase to +0.05.

Conversely, the Dallas Fed general activity index fell to 21.4 in March from 37.2 previously, below 30.9 expectations.

On Tuesday’s calendar is the Case-Shiller home price index, March consumer confidence and the Richmond Fed manufacturing index. In addition, the Treasury will conduct three auctions of 4-week and 52-week bills along with a 5-year note auction.

Here’s where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index was up 669.40 points (+2.84%)

S&P 500 was up 70.29 points (+2.72%)

Nasdaq Composite Index was up 227.88 points (+3.26%)

GLOBAL SENTIMENT

FTSE 100 was down 0.48%

Nikkei 225 was up 0.72%

Hang Seng Index was up 0.79%

Shanghai China Composite Index was down 0.60%

UPSIDE MOVERS

(+) FINL (+31.09%) To be acquired by JD Sports Fashion for $558 million

(+) DRIO (+27.86%) FDA granted 501 (k) clearance for Dario blood glucose monitoring system

(+) USG (+19.46%) Rejected Knauf Entities $42/share offer as too low

(+) BOSC (+9.22%) Reported upbeat Q4 results

DOWNSIDE MOVERS:

(-) PTGX (-57.17%) Terminates clinical development of PTG-100

(-) NAP (-38.10%) Agrees to buy very large cargo carrier for $44.5 million

(-) BHVN (-7.27%) Positive late-stage results from rimegepant fails to outshine competitors

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