Published: Wed, July 03, 2019
Markets | By Otis Pena

Oil shares sag as S&P 500 ends at another record

Oil shares sag as S&P 500 ends at another record

"The S&P 500 rose 0.8% and reach an all-time high of 2,977.86, breaking above its previous record of 2,964".

"We're right back on track", U.S. President Donald Trump said after the world's two largest economies agreed to restart talks. "The sustainability of this upward movement remains in question with the uncertainty continuing for geopolitical tensions".

Still, stocks have rallied to push the S&P 500 to a record for a second straight session in the wake of the United States trade truce with China. The development relieved some pressure on the market, although the trade war still looms over global economic growth.

Why investors are concerned about U.S.

Data on Wednesday showed the USA trade deficit jumped to a five-month high while services sector data showed a slowdown in activity.

Dow 27,000! Well, nearly 27,000: The Dow Jones Industrial Average closed at a record high Wednesday of 26,966, up 179 points in a shortened trading day ahead of the July 4 holiday.

The S&P 500 had rallied almost 7 per cent in June on hopes the two largest economies in the world would find a way to end their trade war.

"Recent gains have put the Dow Jones Industrial Average DJIA, +0.14% in position to ring up its best June gain of 7% since 1938 when the blue-chip benchmark surged an eye-popping 24.3% on the month", reports Market Watch. And China maintains the tariffs it placed on US$110-billion in American goods, primarily agricultural products.

Tesla stock pops after setting new production and delivery records
In total, Tesla delivered 95,200 cars, to all of its global markets combined, between April and June. Starting July 1, the credit is cut by half, to $1,875, and in 2020 it will disappear completely.

Trump also said he would allow USA companies to sell some components to Chinese telecommunications giant Huawei, which last month was placed on an American blacklist as a national security threat.

The financial sector helped lead Canada's main stock index higher in late-morning trading as US stock markets also pushed higher.

The financial sector was flat, while bank stocks, which tend to benefit from a higher interest rate environment, fell 0.37%.

Washington's proposed tariffs on $4 billion worth of European Union goods in a long-running dispute over aircraft subsidies unnerved investors and came just as trade tensions with China seemed to be easing.

Tech stocks, which are Wall Street's top performers so far in 2019, jumped 1.80%, with heavyweight Apple Inc's 2.9% gain providing the maximum support.

In commodities trading, the price of gold rose $12.90 to $1,420.90 per ounce, silver gained 10 cents to $15.25 per ounce and copper dropped 3 cents to $2.24 per pound. Shares fell in Taiwan and most Southeast Asian markets. The contract rose 62 cents on Monday to close at US$59.09.

The dollar fell to 107.62 Japanese yen from 108.90 yen on Tuesday. The euro fell to $1.1278 from $1.1285.

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