(Reuters) – Wall Street hit record highs for the third straight session on Monday, as upbeat domestic data from China and cooling trade tensions between Washington and Beijing improved investor outlook on global economic growth.
FILE PHOTO: Chief Executive Officer of Kaleyra, Dario Calogero, looks up at a board before the company’s IPO above the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., November 26, 2019. REUTERS/Lucas Jackson/File Photo
Apple Inc (AAPL.O) rose about 2%, providing the biggest boost to the S&P 500 .SPX and Nasdaq .IXIC, as tariffs scheduled to go into effect on Dec. 15 on a variety of consumer products including iPhones were suspended.
Chipmakers, among the most trade sensitive stocks, were also higher with the Philadelphia chip index .SOX up 1.7%. The technology sector .SPLRCT led gains among the 11 major S&P sectors.
Data showed China’s industrial output and retail sales growth accelerated in November, suggesting resilience in the Chinese economy to a trade war that has been a concern for global investors for over 1-1/2 years.
Adding to optimism, U.S. Trade Representative Robert Lighthizer said on Sunday an interim trade deal was “totally done” and expected that it would nearly double U.S. exports to China over the next two years.
“It’s very much of a trade-centric push for equities to move higher, capping a very strong year,” said Peter Kenny, founder, Kenny’s Commentary LLC and Strategic Board Solutions LLC in New York.
“We are seeing themes work together to really drive some confidence in the year end”.
Three interest rate cuts by the Federal Reserve this year, along with encouraging economic data has pushed the main U.S. stock indexes to record levels. The benchmark index is up about 27% this year, its best annual percentage gain in six.
The benchmark European stock index also hit an all-time high for the first time in four years on Monday, which had a positive impact on investor confidence globally, Kenny said.
At 11:48 a.m. ET the Dow Jones Industrial Average .DJI was up 170.95 points, or 0.61%, at 28,306.33, the S&P 500 .SPX was up 26.30 points, or 0.83%, at 3,195.10 and the Nasdaq Composite .IXIC was up 90.60 points, or 1.04%, at 8,825.48.
Boeing Co (BA.N) fell 3.3%, capping gains on the Dow, after reports the planemaker was considering whether to cut or halt production of its grounded 737 MAX aircraft.
Advancing issues outnumbered decliners for a 3.16-to-1 ratio on the NYSE and a 2.28-to-1 ratio on the Nasdaq.
The S&P index recorded 70 new 52-week highs and no new low, while the Nasdaq recorded 183 new highs and 37 new lows.
Reporting by Uday Sampath and Medha Singh in Bengaluru; Editing by Shounak Dasgupta