- Dow bulls basked in positive risk sentiment to start the trading week.
- Hong Kong elections and a key China concession in the trade war helped lift the US stock market.
- Apple (AAPL) stock dragged the Dow Jones back towards record highs with a 1.3% gain.
The Dow Jones gained nearly 150 points on Monday after China offered an intellectual property olive branch to the Trump administration. This headline boosted Dow giant Apple (AAPL) more than 1% on hopes of December’s tariffs being removed.
Helping provide even more of a boost to the stock market, a pro-democracy landslide in Hong Kong’s local elections raises hopes for de-escalation in the violent protests.
Dow Jones Booms on Trade Talks & Hong Kong
All three major US stock market indices rallied to start the week. The Nasdaq led the way with a 1.2% rally. The S&P 500 was up 0.64%, making the Dow Jones Industrial Average the laggard despite its triple-digit move.
At last check, the Dow had jumped by 143.75 points or 0.52% to 28,019.37, putting the index within 100 points of its all-time high.
Unsurprisingly given the day’s headlines, the price of gold was 0.6% lower, while the haven Japanese yen also lost ground. The trade war barometer, USD/CNH, posted its first loss after two days of gains, as the offshore yuan firmed.
Adding a definite boost to risk sentiment, record voter turnout in Hong Kong’s local elections delivered a landslide result for pro-democracy candidates. This show of unified strength raises hopes that Beijing will be forced to appease, potentially de-escalating the precarious situation in an important global financial center.
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