Stocks rise on U.S.-China trade-deal optimism.
The U.S. stock market rallied on Monday, underpinned by renewed optimism that the United States and China will resolve their trade dispute later this month.
All of Wall Street’s major indices finished in positive territory at the start of the week. The Dow Jones Industrial Average (NYSEARCA:DIA) rose 96.58 points, or 0.4%, to 26,916.83. The blue-chip index came within 2 points of 27,000 earlier in the day.
The broad S&P 500 Index (NYSEARCA:SPY) climbed 0.5% to close at 2,976.74. Eight of 11 primary sectors reported gains, with information technology leading the pack. Healthcare and materials also outperformed the benchmark index.
Surging tech shares lifted the Nasdaq Composite Index (NYSEARCA:QQQ), which rallied 0.8% to 7,999.34.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) fell around 5% midday, reaching a low of 16.22 on a scale of 1-100 where 20 represents the historic average. VIX would eventually settle down 3.7% at 16.58.
In economic data, the Dallas Fed manufacturing business index declined much less than expected in September, raising optimism that the factory downturn will be short lived. The monthly indicator came in at 1.5, down from 2.7 in August but well ahead of forecasts calling for -2.3.
The Institute for Supply Management (ISM) will release the manufacturing purchasing managers’ index (PMI) on Tuesday. The monthly gauge is forecast to improve to 50 after falling into negative growth in August.
The Final Word: Stocks are riding high on the hope that the Trump administration and Beijing will see eye-to-eye on trade. Negotiators from both countries will resume talks in Washington Oct. 10-11.