- S&P 500 shows best gains since November 2018
- Boeing shares turn out positive after plans to install new software surface
- Three major indexes show improvement this year
The U.S. weekly stocks showed renewed optimism as investors cheered its further gains on Friday’s U.S-China trade front.
Boeing shares turned out to close higher up at 1.5 percent which resulted in a Dow higher upgrade from 138 points after its leaps were sparked by news that the company plans to install another software in its 737 Max aircraft. The stock had been experiencing problems this past week after one of their airlines crushed in Ethiopia resulting in several countries grounding of their planes.
Tech gains and consumer directories resulted in pushes of the S&P 500 up 0.5 percent. These reports bolstered the Nasdaq’s added percentage of 0.75.
2.9 percent gains were made in the S&P 500 and Nasdaq this week with a 1.7 percent gain in the Dow amid Boeing’s troubles. This marked the S&P 500 biggest gain since November 2018.
Three Major Indexes Show Progress this Year
The three major indexes rose more than 10 percent each in 2019 with stocks having shown a tear this year.
“Coming off the lows in December, we thought that was a volatility event. We thought we could get back to those all-time highs by about late March to early April,” said Craig Callahan, the president at Icon Funds. Valuations “still backs up that view.”
Tech sector’s gains were at 4.9 percent this week becoming the best performer in 2019. The best performing stock in the industry being Nvidia which rose more than 12 percent whereas semiconductor stocks like Lam and Broadcom also rose sharply.
Tech, Semiconductor Shares Hit New Heights
On Friday, semiconductor shares featured broadly as VanEck Vectors ETF (SMH) climbed 2.7 percent. Rising more than 8 percent, Broadcom shares led the pack after posting better-than-expected quarterly earnings.
The Chinese Vice Premier spoke on the telephone with U.S. Treasury Secretary Steve Mnuchin and U.S. Trade Representatives Robert Lighthizer. The news stated that: “The two sides have further made concrete progress on the text of the trade agreement between the two sides.”
This comes after CNBC on Thursday reported a combined state visit with the signing of a trade deal. A deal has to be ironed out before President Xi Jinping makes a meeting with U.S. President Donald Trump according to Beijing.
“US-China trade negotiations will likely reach a temporary deal, transforming future negotiations into a framework to monitor China’s compliance with trade and intellectual property policies,” Alberto Gallo, the head of macro strategies at Algebris Investments, wrote in a note. He added, however, that “binary events” like this “may not translate into tail risks.”