Things are starting to look good in the stock market this week. On Tuesday, the S&P 500 made an impressive jump to a three-week high, led mostly by FAANG stocks Facebook, Amazon, and Apple. Industrial shares also hedged their bets that the United States will finally strike a deal with China, putting an end to the trade war.
The three-week high comes after a three-day really that started on Friday. A strong US jobs report with some easy comments on interest rates from Federal Reserve chief Jerome Powell helped to buoy the S&P 500, which improved 9 percent from the 20-month lows breached towards the end of the year.
According to someone in the US delegation, the United States and China are planning to extend their trade talks, in Beijing, for a third day, which is yet to be scheduled. While the uncertainty is not very comforting, anything that brings the world’s two largest economies together to resolve their trade differences is quite optimistic.
The industrial sector of the S&P is always sensitive to trade but it definitely saw a bump of more than 1.4 percent on positive outlook about these trade talks. Boeing also led a rise in the Dow, jumping nearly 3.8 percent after the company reported delivery of 806 new aircraft last year.
But Apple’s contribution to the jump in the S&P is probably the most surprising. The latest data suggested that the technology company was struggling; even as recently as last week, Apple Inc warned of waning demand for iPhones. Still, Apple Inc rose more than 1.9 percent.
Amazon.com Inc also saw share price value increase with a 1.66 percent jump. This helped boost its capitalization to $810 billion, affirming its position as the most valuable company in the United States.
Facebook has quite an impressive day, too, thanks to JPMorgan saying the social media company was one of its favorite internet picks for this year. The social media giant added 3.25 percent, which helped the overall communication services index climb 1.58 percent.
Overall, the Dow Jones Industrial Average jumped 1.09 percent, to close the day at 23,787.45 points. In addition, the Standard & Poors 500 Index improved 0.97 percent to 2,574.41. Also, the Nasdaq Composite saw a bump of 1.08 percent to 6,897.