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Stocks recovers, Parliamentary vote on a Brexit bill is delayed, optimism around a trade truce has already been waning
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Loading...Stocks recovered from sharp losses Monday as technology names helped investors shake off trade tensions, days after the market posted its worst week in nine months.
The Dow Jones Industrial Average closed 0.13% higher after earlier falling more than 500 points. The Nasdaq Composite and the S&P 500, which on Friday recorded its biggest weekly drop since March, also turned positive to close up 0.17% and 0.74%, respectively.
Technology shares rose after Apple made a comeback, ending 0.7% higher at $169.60. The company had earlier fallen more than 2% after Qualcomm said a Chinese court had ordered the company to stop selling several iPhones in China, citing what it found to be patent violations.
The S&P 500's energy sector plunged more than 1.6% as oil reversed sharp gains it had notched last week when OPEC and other major producers agreed to cut production levels. West Texas Intermediate and Brent dropped nearly 2% to around $51.50 and $61, respectively. Bank and healthcare stocks were also lower.
Political tension in the UK weighed on financial markets across the Atlantic, with the pan-European Stoxx 600 down 1.8% and the FTSE 100 lower by 0.8%. Prime Minister Theresa May abruptly delayed a parliamentary vote on a Brexit bill scheduled for today, casting further uncertainty on her plan to leave the European Union.
Investors were also concerned the arrest of Huawei Technologies chief financial officer Meng Wanzhou could undermine trade negotiations between the US and China, according to UBS strategist Vincent Heaney.
Optimism around a trade truce between the largest economies reached earlier this month has already been waning. On Sunday, US Trade Representative Robert Lighthizer said that March 1 is a "hard deadline" for a deal. He also reiterated tariffs would be increased if one wasn't reached.
Source: CNBC
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