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Overnight Markets: Dow climbs nearly 300 points on trade war truce

Overnight Markets: Dow climbs nearly 300 points on trade war truce

Wall Street climbed sharply on Monday after the US and China put their differences “on hold” to make major progress in trade talks.

The Dow Jones Industrial Average added 298 points, or 1.21%, to 25,013, the S&P 500 gained 20 points, or 0.74%, to 2,733 and the Nasdaq Composite climbed 40 points, or 0.54%, to 7,394.

Meanwhile, the Russell 2000 index of small capitalisation stocks booked a fourth record close in a row.

Industrial companies and banks made some of the biggest gains, while technology stocks also rose after the Chinese government said it will buy more US goods, including energy and agricultural products. US Treasury Secretary Steven Mnuchin said the US postponed tariffs on up to $150 billion in goods from China.

Among industrials, Boeing gained 3.6%, and construction equipment maker Caterpillar rose 2.1%. In the financial sector, JP Morgan Chase rose 0.9%, and Morgan Stanley added 0.8%.

Chipmakers surged after Micron Technology raised its profit and revenue forecasts for the fiscal third quarter. Micron jumped 3.9%, while Intel picked up 1.5%.

Other technology stocks also surged, with Apple gaining 0.7%, and Google's parent company Alphabet rising 1.2%.

General Electric Co. rose 1.9% after it said the multinational conglomerate’s transportation unit will merge with railroad-equipment maker Wabtec Corp. in a deal valued at $11.1 billion. Shares of Wabtec rose 3.5%.

Tesla Inc. shares added 2.8% after chief executive Elon Musk announced a new high-performance Model 3 priced at $78,000.

In Asia, share markets were subdued on Tuesday in morning session despite gains seen on Wall Street on the back of an apparent cooling in recent US-China trade tensions.

In Japan, the Nikkei 225 erased early losses to gain 0.01%. Elsewhere, Australia's S&P/ASX 200 shed 0.79%. In China, the Shanghai Composite Index plunged 0.21%.

Markets in Hong Kong and South Korea will be closed on Tuesday for a holiday.

 

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