Wall Street rebounds sharply following Friday's sell-off
- Recovering market sentiment boosts equity indexes on Monday.
- Risk-sensitive technology shares post decisive gains in early trade.
- US Pres. Trump says they will get back to the table with China.
Major equity indexes in the United States started the day sharply higher as the recovering market sentiment allowed investors to go bargain-shopping following Friday's sharp drop. As of writing, the Dow Jones Industrial Average was up 0.8% on the day while the S&P 500 and the Nasdaq Composite were adding 0.77% and 1.1%, respectively.
Following Friday's escalation of the trade war with China announcing retaliatory tariffs on $75 billion worth of US imports and the Trump administration hiking the tariff rate, China's Vice Premier Liu He said that they were willing to resolve the trade dispute with the United States through "calm" negotiations.
Responding to Liu He comments, “They want calm, and that’s a great thing, frankly. And one of the reasons that he’s a great leader, President Xi, and one of the reasons that China’s a great country is they understand how life works,” Trump said, per Reuters.
Among the 11-major S&P 500 sectors, which were all in the positive territory in early trade, the risk-sensitive Technology Index is rising 1.15% to lead the winners following by the Healthcare and Communication Services, up 0.8% and 0.74%.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
