US stocks extend record highs on encouraging signs of China trade-deal progress
- US stocks climbed on Tuesday after the US and China held trade talks, signaling that the two are still working toward resolving disputes.
- "The parties also discussed the significant increases in purchases of U.S. products by China as well as future actions needed to implement the agreement," the Office of the US Trade Representative said in a statement.
- The gains extended closing records set by the S&P 500 and the Nasdaq composite indexes on Monday.
- The Dow Jones industrial average announced a major overhaul of its constituents ahead of Apple's stock split next Monday. The benchmark index said it would boot Exxon, Pfizer, and Raytheon and replace them with Salesforce, Amgen, and Honeywell.
- Watch major indexes update live here.
US stocks climbed on Tuesday amid continued hope for the cooling of US-China trade relations.
The US, represented by Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin, held a regularly scheduled phone call with Chinese Vice Premier Liu He on Monday.
The Office of the US Trade Representative said in a statement that they reviewed the phase-one trade deal and "addressed steps that China has taken to effectuate structural changes called for by the Agreement that will ensure greater protection for intellectual property rights, remove impediments to American companies in the areas of financial services and agriculture, and eliminate forced technology transfer."
Here's where US indexes stood shortly after the 9:30 a.m. ET market open on Monday:
- S&P 500: 3,434.22, up 0.1%
- Dow Jones industrial average: 28,290.57, down 0.1% (18 points)
- Nasdaq composite: 11,379.79, up 0.1%
"The parties also discussed the significant increases in purchases of U.S. products by China as well as future actions needed to implement the agreement," the statement said, adding that they expressed their commitment to ensuring the success of the phase-one trade deal.
The statement came as tensions rise over data security related to the Trump administration's proposed ban of TikTok.
The gains extended closing records set by the S&P 500 and the Nasdaq composite on Monday.
Meanwhile, the Dow Jones industrial average said it would conduct a major overhaul of its constituents ahead of Apple's end-of-month stock split. The index said it would replace Exxon Mobil, Pfizer, and Raytheon with Salesforce, Amgen, and Honeywell.
Exxon is the oldest member of the Dow Jones index — it was added in 1928, one year before the Great Depression.
Dow Jones S&P Indices said the changes would help "diversify the index by removing overlap between companies of similar scope and adding new types of businesses that better reflect the American economy."
The changes are set to go into effect before the market open next Monday, the same day Apple implements a 4-for-1 stock split.
Gold slid on Tuesday, falling as much as 0.7%, to $1,915 per ounce.
Oil also got a boost from improving US-China trade relations. West Texas Intermediate crude gained as much as 2.2%, to $43.57 per barrel. Brent crude, oil's international benchmark, jumped 2%, to $46.05 per barrel, at intraday highs.