Wall Street indexes returned to growth after stocks of technology companies recovered from losses in previous sessions. But the controversial messages from Trump’s administration on trade have limited the uptrend.
The blue-chip index Dow Jones Industrial Average added 29.83 points to 24,282.63 points. The broader index S&P 500 rose by 5.99 points to 2,723.06 points, with the energy and technology sector expanding by more than 1%. The technological Nasdaq added 29.62 points to its value, reaching a level of 7,561.63 points.
Netflix shares rose by 4.52%, recovering from losses in the previous session.
General Electric’s stock price rose sharply on the first day after leaving Dow index, and it recorded its biggest gain in one day in the past more than three years.
Many investors are taking a wait-and-see approach because of the confusion about trade policy. Finance Minister Steven Mnuchin said in a tweet on Monday that the Wall Street Journal’s announcement that the Trump administration is planning to curb Chinese investment in US technology companies is “fake news”. But he added that these restrictions would apply to “all countries trying to steal our technologies”.
Peter Navarro, the Assistant to the President, Director of Trade and Industrial Policy, told that he has no plans to impose restrictions on China and other countries’ investments. He also said stock markets are reacting too much to such fears.
There is much uncertainty about this issue, which makes companies avoid investments and increase savings.
Harley-Davidson’s stock declined by nearly 6% on Monday after the company announced it would move part of its production of motorcycles outside the US. Trump attacked the motorcycle manufacturer, saying in a tweet that “they will be taxed as never before”. On Tuesday, Harley-Davidson’s stock price rose by 0.6%, wiping out earlier losses.
On Tuesday, General Electric reports nearly 6% growth after earlier announced that it splits its healthcare business and sell its stake in Baker Hughes. The company also announced that it would keep the current dividend until the release.
The shares of energy companies rose by 1.5% after the State Department ordered companies that imported Iranian oil to bring it down to zero by November.