US Stock Market Today: S&P 500, Dow Jones, Nasdaq Jump 1% As EU Trade Deal Cheers Wall Street
Shares of Tesla, along with chipmakers Advanced Micro Devices and Super Micro Computer, were among the key gainers in early trade.
US stocks opened higher on Tuesday after the European Union said it agreed to accelerate trade negotiations with the US, indicating a more amicable turn in talks.
The 30-stock Dow Jones Industrial Average gained 1%, or 400 points, to trade above 42,000, while the tech-heavy Nasdaq Composite gained 1.6% to regain 19,000.
The S&P 500 advanced 1.1% to 5,866. All eleven sectoral indices were trading in green led by informational technology and consumer discretionary.
Among major companies, shares of Tesla and chipmakers Advanced Micro Devices and Super Micro Computer jumped over 3%, amid a broad rally in tech stocks.
Wall Street was closed on Monday on the occasion of 'Memorial Day'.
Meanwhile, JPMorgan analysts believe the S&P 500's next move will be upward, even after a 2.6% pullback in US equities last week. This dip reduced its month-to-date gain to 4.2% and pushed the year-to-date return back into negative territory at -1.3%.
However, analyst views the recent weakness as a temporary correction rather than a change in market direction, stating, "We had flagged pullback risk and believe that we experienced that last week."
The yield on the 10-year US Treasury bond declined four basis points to 4.47%. US bond yields have come under pressure in recent weeks as President Donald Trump’s signature tax legislation and a Moody’s Ratings downgrade put the spotlight on rising debt issuance and a ballooning budget deficit.
The dollar strengthened against major currencies. The Bloomberg Dollar Index gained 0.28% to 99.22. The Japanese yen fell 0.9% to 144.14 per dollar. The euro and pound declined by 0.3% and 0.1% respectively.
Spot gold prices plunged 1.4% to $3,296 an ounce.
Oil prices swung as the market awaited an OPEC+ meeting on supply policy, while media reports said the US may impose new sanctions on key supplier Russia. The international benchmark Brent oil traded in the range of $63-65 per barrel.
