Equities climbed on Monday, ending off the highs of the day but still adding to the surge that capped last week’s session as trade talks between the US and China got underway in Beijing, lifting hopes for a resolution to the dispute that’s hit investor sentiment.
Markets overcame earlier weakness and the Dow Jones Industrial Average was up almost 100 points by the close, reaching the highest in almost three weeks while the Standard & Poor’s 500 and the Nasdaq both hit the best since Dec. 14 amid gains in consumer discretionary, tech and energy shares.
President Donald Trump said Sunday that “good things are going to happen” in relation to the trade dispute with China and said tariffs have hurt the world’s second-biggest economy “very badly.” Scotiabank Economics said the talks got a boost when President Xi Jinping sent his chief negotiator to the meeting, as he wasn’t expected to attend.
While Trump said the dispute is hurting China’s economy, data in the US on Monday showed the ISM non-manufacturing index for December fell 3.1 points to 57.6, the lowest level since July and below expectations amid worries about tariffs as well as struggles with finding workers. Last week, the manufacturing gauge also came in below views.
But the print didn’t stop the measures from ending higher on Monday. In company news, Roku (ROKU) surged 25% after reporting a 68% jump in fourth-quarter streaming hours and a 40% rise in active accounts. DexCom (DXCM) climbed 12% after projecting fourth quarter revenue exceeding $331 million, above the $284.7 million Street consensus.
Nasdaq (NDAQ) fell 2.6% and Intercontinental Exchange (ICE) lost 3.1% after reports that a group of nine retail broker-dealers, banks, financial services firms, and global market makers, plan to launch an equities exchange.
By the close, the Nasdaq was up 1.3%, the S&P 500 increased 0.7% and the Dow added 0.4%.