FYI: U.S. stocks headed toward their third consecutive session of gains Monday, buoyed by a rally among shares of banks and technology companies.
Companies that have reeled on escalating trade tensions jumped after U.S. officials said over the weekend that the White House was laying the groundwork for a new round of trade talks with Beijing. President Trump added on Twitter that the U.S. was “doing very well with China, and talking.”
The Dow Jones Industrial Average rose 249 points, or .96%, to 26135. The S&P 500 added 1.21%, and the Nasdaq Composite advanced 1.35%.
Technology stocks helped lift the broader market Monday, with Micron Technology and Nvidia rising more than 2% apiece. Semiconductor companies have swung the past few months as investors have weighed the risk of increasing trade restrictions cutting into firms’ profits.
Semiconductor stocks helped lift the broader market Monday after tumbling ongrowth-related worries the previous week.
Bank stocks, which have slid the past couple of months alongside global bond yields, also climbed. Goldman Sachs rose 1.5%, and Citigroup advanced 1.4%.
As stocks rose, bond yields rebounded from their recent lows. The yield on the benchmark 10-year U.S. Treasury note rose to 1.603% from 1.540% Friday, although it remained well below the 2.684% where it ended last year.
Later this week, investors will parse minutes from the Federal Reserve’s latest meeting, as well as hear from central-bank leaders meeting in Jackson Hole, Wyo.
Bond investors will also be focused on speculation around a major stimulus package from the European Central Bank and German fiscal stimulus, said Commerzbank strategist Rainer Guntermann. Germany plans to sell a new 30-year bund on Wednesday.
The Stoxx Europe 600 added 1.1%, led by gains in its basic-resources, autos and banking sectors. Germany’s DAX rose 1.3%.
In Asia, Hong Kong’s Hang Seng Index rose 2.2% to notch its best performance since June after large-scale protests over the weekend ended peacefully.
The Shanghai Composite rose 2.2%, while indexes in Japan and Korea rose less than 1% apiece.
Chinese shares got a boost after China’s central bank over the weekend announced an overhaul to its interest-rate mechanism that is widely expected to result in easier monetary policy.
Shenzhen-listed technology firms and brokerages were among the biggest gainers in trading Monday, getting a lift from a proposed change to share-listing policy.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-08-19/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/us-stock-futures-rise-on-global-stimulus-talk-trade-optimism-2019-08-19/printWSJ:
https://www.wsj.com/articles/global-stocks-jump-to-start-the-week-11566201668Bloomberg:
https://www.bloomberg.com/news/articles/2019-08-18/asia-stocks-set-to-start-week-higher-yen-flat-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/us-and-china-trade-optimism-fuels-market-surge-dow-stocks-apple-cisco-win-big/CNBC:
https://www.cnbc.com/2019/08/19/us-decision-on-huawei-looms-as-stock-traders-follow-us-china-trade.htmlReuters:
https://uk.reuters.com/article/us-usa-stocks/wall-street-rallies-on-stimulus-cheer-trade-optimism-idUKKCN1V911HU.K:
https://uk.reuters.com/article/uk-britain-stocks/oil-majors-banks-lead-ftse-100-greene-king-soars-on-ma-idUKKCN1V90IOEurope:
https://www.reuters.com/article/us-europe-stocks/stimulus-hopes-drive-up-european-shares-for-second-session-idUSKCN1V90DEAsia:
https://www.cnbc.com/2019/08/19/asia-markets-august-19-bond-yields-us-china-trade-currencies-oil.htmlBonds:
https://www.cnbc.com/2019/08/19/us-bonds-treasury-yields-rally-as-investors-await-auctions.htmlCurrencies:
https://www.cnbc.com/2019/08/19/forex-markets-global-economy-in-focus.htmlOil:
https://www.cnbc.com/2019/08/19/oil-markets-middle-east-tensions-opec-report-in-focus.htmlGold:
https://www.cnbc.com/2019/08/19/gold-markets-us-dollar-equities-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 
