Amazon, trade optimism power Wall Street rally for third day
U.S. stocks rose for a third straight day on Tuesday and the S&P 500 touched three-week highs, once again led by Amazon and a rally in industrials on hopes that the United States and China would strike a deal to end a trade war.
The rally, sparked last Friday by a robust U.S. jobs data and dovish comments on interest rates by Federal Reserve chief Jerome Powell, has lifted the S&P <.spx> by over 9 percent from the 20-month lows hit around Christmas.
The trade talks will continue for an unscheduled third day on Wednesday, when a statement is likely to be issued. So far, officials from both sides have sounded optimistic, with President Donald Trump saying talks were going well.
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"You`re seeing some negotiations happen and the market is starting to think that perhaps we`ll start to see a framework evolve," said Anik Sen, global head of equities at PineBridge Investments.
The trade-sensitive S&P industrials sector <.splrci> rose 1.05 percent. Boeing Co
But the biggest support came from the consumer discretionary sector`s <.splrct> 1.05 percent rise.
At 1:15 p.m. ET, the Dow Jones Industrial Average <.dji> was up 181.10 points, or 0.77 percent, at 23,712.45. The S&P 500 <.spx> was up 14.33 points, or 0.56 percent, at 2,564.02 and the Nasdaq Composite <.ixic> was up 47.73 points, or 0.70 percent, at 6,871.20.
Financials <.spsy> was the only S&P sector to log losses, led by bank stocks <.spxbk> that fell 0.91 percent as the U.S. Treasury yield curve
"What`s been notable about the last week is that even as the broader market rallied, the yield curve really hasn`t steepened much," said Christopher Verrone, partner and head of technical and macro research at Strategas in New York.
"The flattening of the curve again today is likely another macro headwind for financials, and banks in particular."
Gains in Apple Inc
The Philadelphia Semiconductor index <.sox> dropped 1.16 percent. Adding to the woes, Goldman Sachs forecast a tough year for chipmakers, particularly in the first half.
Among stocks, Illumina Inc
Union Pacific Corp
Advancing issues outnumbered decliners by a 2.42-to-1 ratio on the NYSE and a 1.87-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and one new low, while the Nasdaq recorded 23 new highs and 13 new lows.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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