FYI: Major U.S. stock indexes recouped some of their losses Tuesday after China’s central bank signaled it wouldn’t let the yuan fall much further, steadying a stock market that had been slammed by escalating trade tensions.
The Dow Jones Industrial Average climbed 311 points, or 1.11%, to 26029 , near their highs on the day. The S&P 500, meanwhile, added 1.30%, and the Nasdaq Composite rose 1.39%.
A lull in geopolitical tensions between the world’s two biggest economies helped put major indexes on track to notch their first gain in several days after China’s central bank signaled it wouldn’t let the yuan fall much further.
Stocks tend to post solid recoveries in the wake of a sharp pullback. Thomas Lee, a managing partner with Fundstrat Global Advisors, said in a note to clients that after selloffs like the S&P 500’s 3% decline on Monday, stocks usually bottomed within days and gains over a one-month and three-month intervals averaged 4% and 8%, respectively. Over 15 months, stocks rose an average of 15%, he added.
“History says this is a buy-the-dip moment,” Mr. Lee said.
The trade tensions between the U.S. and China may also prompt the Federal Reserve to step up interest-rate cuts to bolster economic growth in the world’s largest economy, some investors and analysts said. Federal-funds futures, used to wager on the direction of monetary policy, show traders pricing in a 100% probability of another cut in September.
On Tuesday, technology stocks rose 1%, leading the market higher. Industrial stocks also rose, gaining 0.8%.
Most other stock sectors rose, with the exception of declines among shares of energy, materials and utility companies.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-08-06/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/dow-futures-jump-200-points-as-stock-market-attempts-to-recover-from-worst-day-of-2019-2019-08-06/printWSJ:
https://www.wsj.com/articles/global-stocks-fall-sharply-as-u-s-china-spat-over-yuan-escalates-trade-war-11565057744Bloomberg:
https://www.bloomberg.com/news/articles/2019-08-05/stock-sell-off-to-hit-asia-as-trade-war-escalates-markets-wrapIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-rallies-312-points-after-finding-key-support/CNBC:
https://www.cnbc.com/2019/08/05/dow-futures-fall-implying-a-200-point-drop-on-tuesday-as-trade-war-fears-batter-wall-street.htmlReuters:
https://www.reuters.com/article/us-usa-stocks/tech-leads-wall-street-rebound-after-worst-day-of-2019-idUSKCN1UW18FU.K:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-falls-for-sixth-straight-day-on-u-s-china-trade-spat-idUKKCN1UW0MSEurope:
https://www.reuters.com/article/us-europe-stocks/european-shares-extend-trade-driven-slide-to-third-day-idUSKCN1UW0NDAsia:
https://www.cnbc.com/2019/08/06/asia-stocks-us-china-trade-war-hong-kong-yuan-in-focus.htmlBonds:
https://www.cnbc.com/2019/08/06/us-bonds-10-year-treasury-yield-in-focus-amid-us-china-trade-war.htmlCurrencies:
https://www.cnbc.com/2019/08/06/forex-markets-chinese-yuan-in-focus.htmlOil:
https://www.cnbc.com/2019/08/06/oil-markets-us-china-trade-in-focus.htmlGold:
https://www.cnbc.com/2019/08/06/gold-markets-us-china-trade-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
