Stocks rally ahead of U.S.-China trade-deal signing.
The U.S. stock market advanced on Monday amid reports that the Trump administration was removing China’s currency-manipulator designation.
All of Wall Street’s major indices rallied into the close. The Dow Jones Industrial Average (DIA) climbed 83.21 points, or 0.3%, to 28,906.98.
The large-cap S&P 500 Index (SPY) gained 0.7% to close at 3,288.13. Ten of 11 primary sectors reported gains, with materials and information technology leading the pack. Real estate, utilities and industrials also outperformed the benchmark average.
Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) climbed 1% to settle at 9,273.93.
A measure of implied volatility known as the CBOE VIX (VXX) was little changed on Monday. The so-called “investor fear index” hovered between 12.41 and 13.09 on a scale of 1-100 where 20 represents the historic average. VIX would eventually settle at 12.42, where it was down a little more than 1%.
Stocks rallied to new highs on Monday amid reports that the United States was planning to no longer designate China a currency manipulator. The news comes ahead of a planned signing of a “phase one” trade deal on Wednesday.
U.S. and Chinese officials confirmed the trade deal last month. At the time, President Trump said both sides would begin negotiating a more comprehensive “phase two” deal as soon as possible.
The Final Word: There were no major economic releases scheduled on Monday. The release schedule picks up later this week with reports on consumer spending, retail sales, housing starts and industrial production set for release.