After a few days of decreased market momentum, the Dow Jones Industrial Average made a significant recovery on Tuesday. Since February 6, 2019, the index has been slipping consistently until February 8, and the opening Monday saw the prices still being controlled by the bears.
However, the trend was reversed on Tuesday after news that US lawmakers had secured a deal on border security funding. The US-China trade deal was also speculated to be on the verge of being feasible, encouraging equities.
The index opened to a green candle at 25,152 on February 12 and rose approximately 372 points to close at 25,425. The 1.49% rise was fuelled by the outperformance of the Caterpillar and 3M stocks.
The biggest gainers of Tuesday’s market were banks. SPDR S&P Bank ETF [KBE], Goldman Sachs, Citigroup, and Morgan Stanley all saw consistent gains of at least 1.2 percent while Bank of America and JP Morgan Chase saw 1 percent increase in their stock prices.
After weeks of disdain, talks between US-China regarding trade has now picked pace as both countries try to close the issue before the March deadline. This has put newfound confidence in investors, who are putting in more money into the market.
Matt Lloyd, the chief investment strategist at Advisors Asset Management, said:
“The more complex and the more longstanding issue that will probably have to be tabled is the intellectual property cases. That’s going to be the bigger challenge.”
Amazon, Netflix, and Alphabet all saw significant rises of over 2 percent while Apple’s stock also saw a 0.86 percent rise.
A Twitter user, New Bukowski, commented on the market movement:
“Up all night exchanging these stocks and bonds. Rearranging my flesh keltic kettlebell swinging. Thinking then the morning dawn and Dow Jones for a brown nose non educated. Fifteen ROI, martyr not. Greed in place of knots. Pangs and iris crazed fangs for profit stays. High today.”
Another Twitter user, AymericTrade, said:
“#DowJones+ 1.48%, one #nikkei225 to + 1.34%, and one CTF (#cac40) to 5075 in Gap this morning! strategy of the day: back on the 5080 big resistance to break to climb a notch!”