(Reuters) – The S&P 500 and the Nasdaq hit fresh record highs on Monday as President Donald Trump said an initial U.S.-China trade pact would be signed “very shortly”, while Boeing shares lifted the Dow after the planemaker fired its chief executive officer.
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., December 17, 2019. REUTERS/Brendan McDermid/File Photo
The so-called “phase one” deal, announced earlier this month, has helped fuel a rally on Wall Street, with the benchmark index hitting a record closing high on Friday for the seventh time in eight sessions.
Last week, the S&P 500 also logged its biggest weekly percentage gain since early September, and is on track for its best annual performance since 2013.
“The end of the year rally is continuing for the right reasons,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “The market is focusing on the fact that we’re seeing some daylight in the trade war.”
China said it would cut tariffs on products including frozen pork, avocado and some types of semiconductors next year.
Boeing Co (BA.N) jumped 3.2% after it ousted Chief Executive Officer Dennis Muilenburg, following a year of intense scrutiny and industrial setbacks set off by twin fatal crashes of its 737 MAX jetliner.
Apple Inc (AAPL.O), which is often sensitive to trade-related news, rose 1%. Shares of the company also helped lift the broader S&P 500 technology sector .SPLRCT.
At 9:57 a.m. ET, the Dow Jones Industrial Average .DJI was up 103.91 points, or 0.37%, at 28,559.00, the S&P 500 .SPX was up 3.68 points, or 0.11%, at 3,224.90. The Nasdaq Composite .IXIC was up 14.16 points, or 0.16%, at 8,939.11.
Few economic indicators are expected in a trading week shortened by the Christmas holiday, with focus turning to the U.S. personal consumption expenditure deflator for November due on Friday.
Declining issues outnumbered advancers for a 1.09-to-1 ratio on the NYSE and a 1.41-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and no new low, while the Nasdaq recorded 64 new highs and 14 new lows.
Reporting by Manas Mishra and Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel