US stocks jump on easing tariff worries, lower bond yields
Sign up now: Get ST's newsletters delivered to your inbox
Traders working on the floor of the New York Stock Exchange, during morning trading on May 27, in New York City.
PHOTO: AFP
NEW YORK - Wall Street stocks jumped on May 27 after President Donald Trump pushed back tariffs on Europe while US Treasury bond yields retreated following last week’s surge.
Mr Trump on May 25 said he would pause his threatened 50 per cent tariffs
Analysts also cited a surprisingly big improvement in US consumer confidence and a pullback in Treasury yields, with the 30-year bond falling below 5 per cent following reports Japan will temper its long-term bond issuance.
The Dow Jones Industrial Average finished up 1.8 per cent at 42,343.65.
The broad-based S&P 500 gained 2.1 per cent to 5,921.54, while the tech-rich Nasdaq Composite Index advanced 2.5 per cent to 19,199.16.
It is “certainly a positive start to the week, reversing a lot of what transpired last week, but clearly (we’re) not out of the woods yet,” said Mr Angelo Kourkafas, of Edward Jones, who described investors as being in “a headline-driven market.”
Major US indices had declined on May 23 after Mr Trump revived his trade war posture, threatening new levies on the EU and on Apple and other smartphone companies that do not manufacture in the United States.
But with Mr Trump’s latest shift on tariffs, “investors now understand there is a path forward that could be bullish,” said Mr Adam Sarhan, of 50 Park Investments.
Among individual companies, Tesla shot up 5.9 per cent after billionaire chief executive officer Elon Musk pledged to return “24/7“ to work
On the downside, data from the European Automobile Manufacturers’ Association said Tesla’s sales fell by more than 50 per cent in April
Trump Media and Technology Group plunged 11 per cent after announcing plans to raise US$2.5 billion (S$3.2 billion) in common stock and convertible senior secured notes as it creates a “bitcoin treasury.”
Salesforce rose 1.5 per cent after announcing a purchase of Informatica for US$8 billion as it seeks to boost its artificial intelligence holdings.
This week’s calendar includes key US inflation data as well as results from AI titan Nvidia.
Mr Sarhan rated the Nvidia results a major driver of broad stock performance, saying “all eyes are on Nvidia.” AFP
