U.S. stock markets closed at record highs on Friday following positive developments on U.S.-China trade negotiations. Moreover, soft inflation data boosted market participants’ expectations of another round of interest rate cuts by the Fed this week. All three major stock indexes ended in positive territory.
The Dow Jones Industrial Average (DJI) advanced 0.7% or 337.47 points to close at 47,544.59, marking a new record close. Notably, 21 components of the 30-stock index ended in positive territory, while nine finished in negative territory. At the intraday high, the blue-chip index touched a record 47,564.52.
The tech-heavy Nasdaq Composite finished at 23,637.46, climbing 1.9% or 432.59 points driven by the strong performance of AI semiconductor bigwigs. This marked a fresh record close for the index. At the intraday high, the tech-laden index touched a record 23,658.66.
The major gainer of the index was QUALCOMM Inc. QCOM. The stock price of the semiconductor behemoth jumped 11.1% after unveiling a new AI chip for data centers. QUALCOMM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 appreciated 1.2% to finish at 6,875.16.69, reflecting the first closing in its history above the crucial technical barrier of 6,800. At the intraday high, the broad-market index touched a record 6,877.28. The benchmark ended in green for the third consecutive day.
Out of the 11 broad sectors of the broad-market index, 10 ended in positive territory, while one was in negative territory. The Communication Services Select Sector SPDR (XLC), the Consumer Discretionary Select Sector SPDR (XLY) and the Technology Select Sector SPDR (XLK) rose 1.4%, 1.4% and 1.9%, respectively.
The fear gauge, the CBOE Volatility Index (VIX) fell 3.5% to 15.79. A total of 19.76 billion shares were traded on Monday, lower than the last 20-session average of 20.85 billion. Advancers outnumbered decliners on the NYSE by a 1.74-to-1 ratio. On Nasdaq, a 1.21-to-1 ratio favored advancing issues.
The S&P 500 recorded 37 new 52-week highs and three new 52-week lows. The Nasdaq Composite registered 132 new 52-week highs and 57 new 52-week lows.
On Oct. 27, President Donald Trump said that he expects the United States and China to enter a trade deal following his meeting with Chinese premier Xi Jinping on Oct. 29 in South Korea. Trump said, “I have a lot of respect for President Xi, and we are going to come away with the deal.”
The trade conflicts between the United States and China escalated this month. On Oct. 9, China’s Ministry of Commerce issued a notification requiring all foreign companies to obtain a license to export products from China that contain more than 0.1% of rare earth minerals, whether sourced from China or manufactured using Chinese extraction, refining, magnet-making or recycling technology.
