Stocks rose on Monday, erasing earlier losses, as worries about a potential trade war look like they are fading away.
The Dow Jones industrial average closed 336 points higher at 24,874. Caterpillar rose 3.2% being the biggest gainer component of the Dow. The S&P 500 rose 1.1% to 2,720.94 after briefly trading lower, with utilities as the best-performing sector. Harley-Davidson, a closely watched stock amid the tariff news from the European Union and/or any other countries, rose 2.4%. The tech-heavy index, Nasdaq composite advanced 1% to close at 7,330.
Comments from analysts regarding the Caterpillar and Harley-Davidson gains could draw some conclusions that the trade conflicts have a diplomatic end. President Donald Trump's comments on NAFTA yesterday also showed some flexibility from his side as Trump appeared to be opening the door for negotiations on tariffs.
Last week Trump announced the U.S. will impose 25% tariff on steel imports and a 10% tariff on aluminum imports. Trump’s comments sparked fears of a potential global trade war as world leaders considered the announcement. The European Union responded by saying that Harley-Davidson bikes and other U.S. products could be included in their new tariff plans.
Tariff Worries Fade Away
Daily Analysis - 06/03/2018