Nasdaq Gains 0.94% as China-U.S. Trade Deal Progresses
The Nasdaq Composite leads the indexes in gains for the week so far, but the winder market is all relatively bullish.
Quick overview
- China and the United States are making progress in trade talks, positively impacting the stock market.
- The Nasdaq Composite rose nearly 1%, driven by strong performances from technology stocks like Tesla and Alphabet.
- Tesla's stock gained 3.56% following a significant investment from CEO Elon Musk, reflecting investor confidence.
- Trade negotiations are expected to conclude by Friday, focusing on TikTok ownership and other trade details.
China and the United States are reaching some level of agreement with their trade talks, and the stock market seems optimistic with the Nasdaq Composite up nearly 1%.
The Nasdaq index grew by 0.94% before trading closed off on Monday, with the Dow Jones up 0.11% after a downturn Friday. The S&P 500 gained 0.47% as well, rounding up the slightly bullish stock market that has been led by technology stocks as the week begins.
Tech Stocks Perform Well
Tesla (TSLA) was one of Monday’s big winners with 3.56% in gains. The stock has done well since Tesla’s CEO Elon Musk decided to invest $1 billion in the company’s stock. Investors are taking this as a serious indicator of his confidence in the company and its ability to do well in the coming months and years.
Apple (AAPL) is looking much better this week than it did last week. After a controversial product launch last week that left many customers disappointed, Apple stock declined at a crucial moment. However, the company is performing well in sales and continues to be a global business juggernaut even with a set of weak product launches. APPL stock is up 1.12% for the beginning of the week.
Alphabet (GOOGL) passed $3 trillion in valuation, which helped to propel its stock early this week. The company also celebrated good news from its ongoing lawsuit with the U.S. government over antitrust practices. Alphabet will be able to keep most of its technology and holdings but will have to share some aspects of its operations with competitors to help even the playing field. GOOGL stock rose 4.49% on Monday.
The Trade Deal Looks Promising
So far, the trade negotiations between the United States and China have proven to be positive, boosting investor confidence in the stock market. The two countries are currently hammering out a detailed deal on ownership of TikTok, currently owned by the Chinese company ByteDance.
The two world powers are expected to finalize many details of their trade deal by Friday. The negotiations are taking place in Madrid, Spain, and the talks are a culmination of months of back and forth between the two countries about tariffs, restrictions, and the overall framework of international trade.
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