Technology companies led stocks broadly higher on Wall Street Monday afternoon as investors looked ahead to the signing of an initial trade deal with China and the potential for future talks.
The world’s largest economies are expected to sign the “Phase 1” trade agreement on Wednesday. It is being viewed as an opening to future negotiations that will deal with more complicated trade issues. Wall Street is also looking ahead to a busy opening week of corporate earnings being kicked off by major banks.
Chipmakers were among the gainers in the technology sector. Nivida climbed 2.9% and Micron Technology rose 0.7%. The sector is particularly sensitive to developments in trade relations because many of the companies rely on China for sales and supply chains. Apple also rose, adding 1%.
Industrial and communication services companies also made solid gains. General Electric rose 3% and Facebook added 1.6%.
Electric car maker Tesla jumped 8.7% and was on track to close above $500 for the first time.
Health care stocks slumped, with insurance companies among the sector’s biggest decliners. Cigna fell 3%, UnitedHealth Group slid 2.2% and Anthem dropped 2.4%.
The yield on the 10-year Treasury rose to 1.85% from 1.82% late Friday, in another sign that investors are heading into the week with confidence. The pickup in yields helped lift financial stocks, as it make it possible for banks to charge higher interest rates on mortgages and other consumer loans. Goldman Sachs Group rose 1.6% and Citizens Financial Group gained 1%.
KEEPING SCORE: The S&P 500 index was up 0.5% as of 1:21 p.m. Eastern time. The Dow Jones Industrial Average rose 57 points, or 0.2%, to 28,881. The Nasdaq rose 0.9%. The Russell 2000 index of smaller company stocks gained 0.5%.
STRONG DEFENSE: Hexcel rose 8.2% after the