On Monday, the major indexes of the Wall Street rallied. This was in the wake of the three month truce period that was announced by United States and China in the trade war between the two.
The trade war has been affecting the stock market adversely, for more than half of the year.
The S&P index witnessed an increase of more than 1 percent which was its biggest percentage gain when taking into consideration the weekly gains for about seven years.
Over the weekend, the investors were lifted by the news that the president of the United States, Donald Trump, and the president of China, Xi Jinping have reached a truce during the talks in the G20 summits which was held at Argentina.
The two have declared a truce period of ninety days and have stated that they’ll be holding off their new tariffs for this period. This came in the wake of the tensions on trade that have been escalating.
The Chief Investment strategist of the State Global Advisors, Michael Arone,stated that the day when the truce was announced is all about celebrating the point that United States and China have finally delayed the scenario which could have eventually become the worst case scenario when taking into consideration the trade relations between the two.
Despite this, earlier in this session, the major indexes experienced a closure below their highs.
Arone also stated that despite the truce there are some very important and sticky issues which require attention and need to be solved as soon as possible.
Atlanta’s SunTrust Advisory Services’ Chief Market Strategist, Keith Lerner stated it as a sort of a “relief rally.”
On Monday, the shares of technology also increased by 2.1 percent. This particular sector has also been sensitive to the tensions in the trade.
Source: Reuters, Investing
