Wall St. rises as trade war worries cool

(Reuters) – U.S. stocks rose across the board on Monday as worries about a trade war in between the United States and China reduced following reports that the two countries wanted to work out tariffs and trade imbalances.

A traders works on the flooring of the New York Stock Exchange, (NYSE) in New York, U.S., March 22, 2018. REUTERS/Brendan McDermid

All the 11 major S&P indexes were up, led by a 2.4 percent gain in technology.SPLRCT and financial.SPSY indexes. Gainers on the New York Stock Exchange surpassed losers for a 9.30-to-1 ratio and for a 7.39-to-1 ratio on the Nasdaq.

The United States asked China in a letter last week to slash tariffs on U.S. vehicles, buy more U.S.-made semiconductors and offer U.S. companies higher access to the Chinese financial sector, the Wall Street Journal reported on Monday.

Chinese Premier Li Keqiang stated on Monday the nation would treat foreign and domestic companies similarly, not require foreign firms to transfer technology and would enhance copyright rights, duplicating guarantees that have actually failed to pacify Washington.

Stock markets were gripped by fears of a global trade war after President Donald Trump recently relocated to impose tariffs on Chinese imports of approximately $60 billion, adding to the import limitations he has currently put on solar panels, steel and aluminum amongst others.

“There are some tentative indications that fears of an escalation of trade stress are beginning to alleviate,” Craig Erlam, a market analyst at OANDA, wrote in a note to customers.

“A rebound in global equities overnight is using the market some optimism of stabilization after recently’s thrashing.”

At 9:34 a.m. ET, the Dow Jones Industrial Average . DJI was up 1.73 percent at 23,939.32. The S&P 500 . SPX gotten 1.66 percent to 2,631.14 and the Nasdaq Composite . IXIC rose more than 2 percent to 7,134.25.

Microsoft ( MSFT.O) jumped 6 percent and was the most significant motorist of the three main indexes. Morgan Stanley raised its price target on Microsoft’s stock, stating the software application company could strike $1 trillion in market price with growing public adoption of the cloud and enhancing margins.

Shares of Boeing ( BA.N) and United Technologies ( UTX.N) were up about 2.8 percent. Together with other commercial stocks, they have taken a beating in the wake of Trump’s tariffs strategies due to their direct exposure to China.

Recently, the three main U.S. indexes published their steepest weekly declines since January 2016 as the fears of a global trade war added to jitters about a faster pace of U.S. rates of interest hikes and fears of increased regulations to the high-flying technology sector in the wake of Facebook’s ( FB.O) data scandal.

Facebook fell 1.4 percent, after losing $75 billion recently in the middle of protest over the social networks business’s handling of users’ data.

Intel ( INTC.O) acquired more than 3.4 percent after brokerage Raymond James upgraded the stock to “market carry out”.

Reporting by Sruthi Shankar in Bengaluru; Modifying by Anil D’Silva