Dow Jones soars more than 400 points as trade war fears subside

by Frankie Norman March 28, 2018, 0:41
Dow Jones soars more than 400 points as trade war fears subside

The Dow Jones Industrial Average dropped to the lowest level in four months on Friday, extending a week of sharp losses as investors anxious about a trade war and as President Donald Trump signed a hefty spending bill into law.

Technology companies accounted for much of the broad rally, which powered the Dow Jones industrial average to a gain of almost 670 points.

Stocks are opening modestly higher on Wall Street following a huge gain the day before, led by more gains in technology companies and banks. The S&P also rose, gaining 2.04 percent to 2,641.02. The Nasdaq gained nearly 3% and the S&P 500 climbed more than 2%. Even the tech-heavy Nasdaq composite, beleaguered last week over data issues at its go-to victor Facebook, surged 3.3 percent. The stock declined $2.52, or 1.6 percent, to $156.87.

After leaping more than 660 points on Monday, the Dow industrials ended down by 344 points, or 1.4 percent.

Last Thursday and Friday, the Dow lost more than a total of 1,100 points amid increasing signs of a looming trade war between the two major trading partners.

The Nasdaq is up 317.15 points, or 4.6 percent.

The Stoxx Europe 600 Index fell 0.7 percent.

The Federal Trade Commission confirmed on Monday that it was investigating the social media giant's privacy practices, including whether the company engaged in "unfair acts" that cause "substantial injury" to consumers.

The stock, which already took a big hit last week, was the biggest decliner in the S&P 500 Monday, tumbling $9.10, or 5.7 per cent, to $150.29.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.83 percent. However, at the start of the new week the tensions calmed and Dow Jones recovered most of the loses accumulated last days and return to growth. Treasury Secretary Steven Mnuchin told Fox News that he's "cautiously hopeful" that China will reach a deal to avoid tariffs on $50 billion of USA exports, while European leaders demanded a permanent exclusion at the threat of retaliation and a deal was struck with South Korea.

The yield on the 10-year Treasury rose to 2.85% from 2.81% late on Friday.

Finish Line vaulted $3.28, or 31.1 percent, to $13.83 after the sporting goods retailer agreed to be bought by JD Sports Fashion PLC. The Nasdaq rose 21 points, or 0.3 percent, to 7,242. Bank of America added 95 cents, or 3.3 percent, to $30.13.

Benchmark U.S. crude fell 38 cents to $65.50 per barrel on the New York Mercantile Exchange. On the week, the Dow fell 5.7%, the Standard & Poor's 500 shed 6% and the Nasdaq lost 6.5%. Brent crude, used to price global oils, slipped a penny to close at $70.11. The euro strengthened to $1.2455 from $1.2367.

The Bloomberg Dollar Spot Index declined 0.4 percent to the lowest in five weeks.

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