Published: Mon, July 09, 2018
Business | By Tara Barton

Markets Right Now: Markets snap higher despite trade tiff

Markets Right Now: Markets snap higher despite trade tiff

Investors have pulled money out of emerging markets and European equities more quickly over the last two months than in 2016, Bank of America Merrill Lynch strategists said on Friday in a weekly note.

US equities marched higher after monthly jobs data showing a 213,000 gain in non-farm payrolls in June and stable wage growth.

A solid pickup in hiring by US employers last month helped keep investors in a buying mood.

Traders shrugged off the onset of a tariff fight between the USA and China and sent stocks solidly higher.

The Dow Jones Industrial Average gained 99.74 points, or 0.4 percent, to 24,456.48. The Nasdaq composite increased 101 points, or 1.3 percent, to 7,688.

Reflecting expectations that small US companies are less at risk than multinationals from tariffs, the Russell 2000 index has outperformed the S&P 500, Dow and Nasdaq since early March.

Daniel Cormier calls out Brock Lesnar after dominant UFC heavyweight title win
With Lesnar back in the pool, he will still have to serve a little more than six months left of his previous suspension. That could mean a title defense of his 205-pound belt before facing Lesnar for the heavyweight championship.

New US tariffs on more than US$30 billion in Chinese imports are slated to take effect at midnight, a move that is expected to spark retaliation from Beijing.

Consumer staples also advanced, such as Procter & Gamble, which gained 1.6 per cent and Mondelez International, which climbed 2.5 per cent.

The gains came despite an escalation in trade tensions as the USA imposed tariffs on Chinese goods and China responded in kind. Markets were watching to see if tight labor market conditions would force wages higher, a sign of inflation.

The S&P 500 rose 41.45 points, or 1.5 percent.

The Russell 2000 is up 36.41 points, or 2.2 percent.

The Russell 2000 is up 158.54 points, or 10.3 percent.

Like this: