Wall Street registered decent gains on Tuesday. The indexes ended in the green after President Donald Trump told reporters that discussions with China on trade had “already begun”. However, gains were capped after the US threatened new tariffs on European Union products. These tariffs were proposed in the wake of a prolonged dispute over aircraft subsidies, which arrived just when U.S.-China trade tensions appeared to have taken a backseat. Separately, losses among bank shares also dented investors’ sentiment.
The Dow Jones Industrial Average (DJI) increased 0.26%, to close at 26,786.75. The S&P 500 gained 0.29% to close at 2,973.02. The Nasdaq Composite Index climbed 0.22%, finishing at 8,109.09. The CBOE Volatility Index (VIX) decreased 8.04% to close at 12.93. Advancers outnumbered decliners on the NYSE by a 1.24-to-1 ratio. A 1.30-to-1 ratio favored decliners on Nasdaq.
The S&P 500 gained 8.7 points and closed at a new record high for the second session on Tuesday, while the tech-heavy Nasdaq climbed 18 points on Jul 2.
Trump’s $4 billion Potential EU Tariffs
United States threatened European Union with $4 billion in probable additional tariffs on Jul 1, in a bid to pressurize Europe in a lengthy dispute over aircraft subsidies. The 89 items’ additional list comprise of Scotch Whiskey, Italian cheese, pasta, ham and coffee among other items.
This additional list is second to an earlier list that includes about $21 billion in EU products. Both countries have threatened levies on each other’s products in a trade spat after aircraft subsidies were provided to European aircraft maker Airbus and its American rival Boeing BA .
Bank Shares Suffer Loss after US Yield Hits Lowest Since 2016
The benchmark 10-year yield fell to the lowest since November 2016, trading around 1.98% while the 2-year rate fell to 1.77% on Jul 2. This led to the SPDR S&P Bank ETF (KBE) close 1.27% lower on Jul 2 and led the losses in bank shares.
Shares of Citigroup Inc. C fell 0.42% while Bank of America Corporation BAC and Wells Fargo & Company WFC shed more than 0.9% each.
Varian Medical Systems, Inc. VAR recently announced an asset purchase agreement to acquire Boston Scientific’s BSX portfolio of drug-loadable microsphere and bland embolic bead products for $90 million. ( Read more )
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it’s predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce “the world’s first trillionaires,” but that should still leave plenty of money for regular investors who make the right trades early.
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