(Reuters) – Wall Street rose on Wednesday, boosted by Apple Inc after the launch of its latest iPhones, while investor nerves were also soothed by China’s move to ease trade tensions with the United States.
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 9, 2019. REUTERS/Brendan McDermid
The gains took Apple’s market valuation above $1 trillion and lifted the wider technology sector .SPLRCT by 0.78%, the biggest boost among the 11 major S&P 500 sectors.
Tech stocks bounced from a drop in the previous session, which saw investors moving to more value-oriented stocks from growth shares.
Phil Orlando, chief equity market strategist at Federated Investors, said he believed investors will likely continue to move money into sectors like financials and energy, as well as small cap stocks, which have all underperformed this year.
Adding to the positive momentum, China’s finance ministry moved to exempt 16 types of U.S. goods, including lubricants and some animal feed ingredients, from additional retaliatory tariffs, ahead of a planned meeting between trade negotiators.
While on the surface, the move is seen as a friendly gesture to thaw relations with the United States, analysts are skeptical about how much it will move the needle in resolving a protracted trade war that has hurt the global economy.
The nature of the goods that are being exempted are staples and indicates that China’s decision is likely more to do with supporting its own economy rather than extending an olive branch to the United States, Ed Egilinsky, head of alternative investments at Direxion said.
“There’s a big difference