Dow rises more than 400 points as trade tensions ease


Investors “have apparently recognized that a trade war is in no one’s best interests and therefore extremely unlikely,” said Jeremy Klein, chief market strategist at FBN Securities, in a note. “Specifically, the President merely wants to fulfill a campaign promise while China will only enact token countermeasures to appease its citizens.”

Markets overseas also jumped on Monday. In Asia, some indexes rose after news surfaced that the U.S. had agreed to excuse South Korea from steel levies. Meantime in Europe, stocks were lower as investors failed to shake off trade war worries.

Wall Street finished Friday’s session deep in the red on Friday, with the Dow dropping more than 400 points by the close — closing at its lowest level since November and finishing in correction territory, as it was 11.6 percent down from its 52-week high. The S&P 500 ended Friday’s session just outside of correction territory.

“The [S&P 500] comes into the last week of March and the 1st quarter after of the worst weekly showings in the last decade. With the recent intense back and forth action, the environment is looking more like 2011 once again,” Frank Cappelleri, executive director at Instinet, said in a note to clients.

Last week, President Donald Trump signed an executive memorandum that would inflict tariffs on Chinese imports — of up to $60 billion. China retaliated with their own set of levies, drawing up a list of 128 U.S. products that could be possible retaliation targets.

Social media firms continue to be under fire, as abuse of people’s data remains a key topic of discussion. Last week, reports emerged alleging that Cambridge Analytica, an analytics company, had gathered data from 50 million Facebook profiles without the permission of its users. While Facebook have since come out to apologize and try to rectify the matter, concerns remain.

Facebook shares dropped 2.1 percent and dipped into bear market territory after the Federal Trade Commission announced it was investigating the company’s data practices. Shares of Google-parent Alphabet also declined on the news, before rebounding to trade along the flatline.

In other corporate news, Boeing shares rose 1.7 percent after the company announced it delivered its first 787-10 Dreamliner jet to Singapore Airlines over the weekend.

Meanwhile, Dollar Tree rose 3.1 percent after Piper Jaffray upgraded the stock to “overweight” from “neutral,” citing, among other factors, good investments at its Family Dollar unit.



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