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Wall Street extends rally, elevated by Apple and chipmakers

Reuters 

By Noel Randewich

(Reuters) - Wall Street rallied for a fourth session on Wednesday, led by Apple, chipmakers and other trade-sensitive stocks, after signs of progress in trade talks between the and

The benchmark S&P 500 <.SPX> is up about 10 percent from a 20-month low it touched around Christmas, boosted by hopes for a deal between the world's two largest economies, which eased some worries over the impact of the trade spat on global growth.

Market participants were also encouraged by strong U.S. jobs data and recent indications the Federal Reserve is in no rush to raise interest rates.

The U.S. Federal Reserve released minutes showing a range of policymakers said in December they could be patient about future interest rate increases and a few did not support the central bank's rate increase that month.

pledged to purchase "a substantial amount" of agricultural, and manufactured goods and services from the United States, the U.S. Trade Representative's office said, as talks wrapped up in

The S&P rose 1.22 percent, with Inc up 2.3 percent despite a Nikkei report that the company had reduced planned production for its three new models for the January-March quarter.

The company's shares tumbled about 10 percent last week after it warned on holiday quarter sales and its suppliers, which largely include chipmakers, took another beating on Tuesday after <005930.KS> flagged weak chip demand.

The Philadelphia Semiconductor index <.SOX> gained 2.32 percent. Chipmakers are among the U.S. multinationals with the highest revenue exposure to

"If you want to gauge how investors are viewing the trade talks, just watch tech, and in particular," said Jack Ablin, at in

Shares of , which also has a large exposure to China, climbed 1.11 percent, with the S&P industrial index <.SPLRCI> gaining 0.73 percent.

The CBOE Volatility index <.VIX>, often referred to as an investor fear gauge, dropped half-a-point to a one-month low of 20.

At 2:41 pm ET, the <.DJI> was up 0.46 percent at 23,896.83 points, while the S&P 500 <.SPX> had gained 0.42 percent to 2,585.27.

The Composite <.IXIC> added 0.81 percent to 6,952.73.

Financial stocks <.SPSY> rose 0.57 percent, with climbing 2 percent.

Echoing the minutes released on Wednesday, many policymakers said they could wait on any further interest rate hikes until they had a better handle on whether growing risks will undercut an otherwise solid U.S. economic outlook.

"A more stable is going to lead to more stable markets over time," said Mark Heppenstall, at in Horsham,

"Some of the sharp moves in the market were driven by the fact that tightening is starting to have an impact on economic growth and financial conditions."

Shares in sank 11 percent, dragging down the consumer staples index <.SPLRCS>, after the Corona brewer cut its fiscal 2019 profit outlook.

Advancing issues outnumbered declining ones on the NYSE by a 2.15-to-1 ratio; on Nasdaq, a 1.79-to-1 ratio favored advancers.

The S&P 500 posted no new 52-week highs and 1 new lows; the Composite recorded 25 new highs and 5 new lows.

(Additional reporting by in Bengaluru; Editing by and Chizu Nomiyama)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, January 10 2019. 01:39 IST
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