- US equities climbed on Tuesday after the White House calmed investor nerves by clarifying that its trade deal with China remained intact.
- Futures for major indexes tumbled on Monday evening after the White House trade adviser Peter Navarro told Fox News the US-China agreement was "over."
- Navarro later walked back the comments, saying they were taken "wildly out of context." President Donald Trump said the deal was "fully intact."
- Oil extended its rally above $40 per barrel, with West Texas Intermediate crude rising as much as 2.9%, to $41.63.
- Watch major indexes update live here.
US stocks climbed on Tuesday after the White House calmed investor nerves by clarifying that the country's trade deal with China remained intact.
Futures contracts for major indexes tumbled on Monday evening after the White House trade adviser Peter Navarro told Fox News the US's trade agreement with China was "over." He cited "the lack of trust we now have in the Chinese Communist Party" and blamed the country for the coronavirus pandemic. Dow futures tanked roughly 400 points following Navarro's interview.
The trade adviser quickly walked back his comments, saying they were taken "wildly out of context" and "had nothing at all to do with the phase-one trade deal." President Donald Trump said in a tweet late Monday that the agreement was "fully intact." The comments helped erase futures-market losses, and the gains carried over into regular trading.
Here's where US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:
- S&P 500: 3,140.48, up 0.7%
- Dow Jones industrial average: 26,248.91, up 0.9% (224 points)
- Nasdaq composite: 10,114.92, up 0.6%
Bank stocks led the rally, with JPMorgan, Bank of America, and Citigroup all climbing. The so-called reopening trade — including hotel, cruise, and retail stocks — also gained.
Wirecard shares spiked as much as 45% following reports that former CEO Markus Braun was arrested on suspicion of false accounting. The German fintech company slid 56% at intraday lows on Monday after saying that $2 billion worth of missing cash likely didn't exist.
Oil extended its climb above $40 per barrel. West Texas Intermediate crude gained as much as 2.9%, to $41.63. Brent crude, the international benchmark, rose 2%, to $43.93, at intraday highs.
Tuesday's upswing followed a less impactful session to start the week. The Dow rose 154 points on Monday as investors turned their focus to economic-reopening progress from risks of another surge in COVID-19 infections.
Tech stocks including Amazon, Adobe, and Square led the rally. The popular stay-at-home plays Netflix, Zoom, and Peloton all hit record highs as investors viewed rising coronavirus case counts as a harbinger of longer lockdowns. Gold reached its highest level in nearly eight years.
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