Wall Street records decisive gains led by industrials and real estate
|- News of China and the U.S. looking to have trade negotiations this week boosted industrials on Tuesday.
- Rising house prices lift the real-estate-related stocks.
- On a monthly basis, the S&P 500 records its best percentage gain since January.
Major equity indexes in the United States started the day on a positive note as the latest trade headlines boosted the market sentiment. The CBOE Volatility Index, Wall Street's fear gauge, dropped 10% to confirm a high appetite for risk-sensitive assets.
Earlier today, Bloomberg claimed that the US Treasury Secretary Steven Mnuchin and Chinese envoy Liu He and their staffs were engaged in a dialogue to organize a meeting later this week, which could create an opportunity to avoid further trade conflicts. The S&P 500 Industrials Index (SPLRCI) gained over 2% on these headlines to become the best performing sector on the last day of July.
In the meantime, the S&P CoreLogic Case-Shiller announced that the U.S. National Home Price NSA Index rose 6.4% on a yearly basis in May and the S&P 500 Real Estate Index added 1.9%.
On the other hand, a modest rebound in seen technology shares weighed on the telecom sector, which recorded strong gains as an alternative to tech stocks in recent day, and the S&P 500 Telecom Services Index lost 0.77%.
The Dow Jones Industrial Average added 108.36 points, or 0.43%, to 25,415.19, the S&P 500 rose 13.67 points, or 0.5%, to 2,816.27 and the Nasdaq Composite gained 41.79 points, or 0.55%, to 7,671.79. For the month, these three indexes were up 4.7%, 3.6%, and 2.2% respectively.
DJIA Technical Outlook (via FXStreet Chief Analyst Valeria Bednarik)
"The Dow trimmed Monday's losses and is currently around its weekly opening level, with the bullish stance prevailing according to technical readings, given that in the daily chart, technical indicators pared their declines in positive territory and are slowly regaining the upside, while the index remains well above a bullish 20 DMA, which keeps advancing above the larger ones."
"Further recoveries are also hinted in the 4 hours chart, as the index settled a few points above its 20 SMA, while technical indicators re-entered positive territory, the Momentum heading north around its 100 level and the RSI also advancing, now at around 58."
According to the analyst, supports could be seen at 25,409, 25,364, and 25,321 while resistances align at 25,486, 25,535, and 25,590.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.