U.S. stock markets closed higher on Tuesday as market participants awaited U.S.-China trade deals. A couple of major AI related news also boosted investors sentiment in risky assets like equities. All three major stock indexes ended in positive territory.
The Dow Jones Industrial Average (DJI) advanced 0.3% or 105.11 points to close at 42,866.87. Notably, 21 components of the 30-stock index ended in positive territory and 9 finished in negative zone. The tech-heavy Nasdaq Composite finished at 19,714.99, rising 0.6% or 123.75 points due to strong performance of technology bigwigs.
The S&P 500 increased 0.6% to finish at 6,038.81. Wall Street’s most observed benchmark is currently less than 2% away from its all-time high. 10 out of 11 broad sectors of the broad-market index ended in positive territory while one in negative zone.
The Consumer Discretionary Select Sector SPDR (XLY), the Communication Services Select Sector SPDR (XLC), the Energy Select Sector SPDR (XLE) and the Health Care Select Sector SPDR (XLV) climbed 1.2%, 1.3%, 1.8% and 1.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 1.2% to 16.95. A total of 18.5 billion shares were traded on Tuesday, higher than the last 20-session average of 17.9 billion. The S&P 500 recorded 12 new 52-week highs and 2 new 52-week lows. The Nasdaq registered 75 new 52-week highs and 45 new 52-week lows.
The trade and tariff related negotiations between the United States and China reinitiated in London on last Monday. U.S. Treasury Secretary Scott Bessent and two other top level Trump administration officials has been negotiating with their Chinese counterparts in order to negotiate tariffs and trade related disputes between the two largest trading partners of the world.
Aside from Bessent, other two U.S. delegators will be Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. Chinese Vice Premier He Lifeng will hold the first round of trade and economic talks with the U.S. Talks will continue on Tuesday.
National Economic Council Director Kevin Hassett said Monday that the U.S. was seeking confirmation that China would restore critical mineral exports. Beijing protested against the U.S. Commerce Department’s warnings to U.S. chipset manufacturers against using Chinese semiconductors.
On Tuesday, Lutnick said, “I think the talks are going really, really well. We’re very much spending time and effort and energy – everybody’s got their head down working closely.” Lutnick further said that talks may continue Wednesday morning if required.
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