Dow Pops Ahead of Fed Meeting, Trump-Xi Summit
Stocks surged on Tuesday after President Donald Trump said he will be meeting with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit, boosting hope for a U.S.-China trade deal.
The Dow Jones Industrial Average surged 326.30 points, or 1.3%, to 26,438.83, as Apple and Boeing outperformed.
The S&P 500 gained 30.37 points, or 1.1%, at 2,920.04. The S&P 500 also traded within 1% of its all-time intraday high of 2,954.13, which was reached May 1.
The NASDAQ Composite climbed 123.97 points, or 1.6%, to 7,969
Boeing leaped 2.3%, while another trade bellwether, Caterpillar shares, rose 2.9%. Deere shares also gained more than 3%. Semiconductor stocks jumped led by 6% gains from Nvidia and Micron Technology.
Stocks also got a boost as investors bet the Federal Reserve will set the stage for more accommodative monetary policy at this week's meeting.
The Fed's decision is scheduled to be announced Wednesday at 2 p.m. ET.
Trump said in a tweet he “had a very good telephone conversation ” with Xi. He added: “We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.” The summit will start on June 28.
Prices for the benchmark 10-year U.S. Treasury gained, driving down yields to 2.06% from Monday's 2.09%. Treasury prices and yields move in opposite directions.
Oil prices hiked $1.86 to $53.79 U.S. a barrel.
Gold prices ballooned $6.50 at $1,349.40 U.S. an ounce.