Stocks are closing higher on Wall Street ahead of the signing of a “Phase 1” trade deal with China, sending the S&P 500 and the Nasdaq to record highs.
Technology companies led the way. The gains came a day before major banks kick off the latest earnings reporting season for U.S. companies. The S&P 500 rose 22 points, or 0.7%, to 3,288.
The Dow Jones Industrial Average rose 83 points, or 0.3%, to 28,907. The Nasdaq climbed 95 points, or 1%, to 9,273. Bond prices fell as demand for safe-haven assets diminished. The yield on the 10-year Treasury rose to 1.84%.
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. Even a partial deal should remove much of the uncertainty that has weighed on companies and investors, at least until after the election, said Scott Ladner, chief investment officer for Horizon Investments in Charlotte.
“We don’t think the tariff overhang is going to be very relevant over the next nine months,” Ladner said. “Acting tough with China and imposing tariffs two years before an election is a very different story than doing it two months before an election.”