US stock prices saw to a higher closing on Monday as\nTreasury yields recovered, easing fears of a possible recession. Equities also managed\nto gain momentum after the United States agreed to extend a temporary reprieve\nto Chinese telecoms giant Huawei.<\/p>\n\n\n\n
In the early hours of trading in the eastern United States, the Dow Jones Industrial Average futures\nrecorded a rise of about 311 points. Futures for the S&P 500 and the Nasdaq\n100 also recorded higher prices.<\/p>\n\n\n\n
The gains add to the rebound that began last week after the\nDow recorded its worst session in 2019. The index fell 30 points by 800 points,\nor 3.1 percent, on Wednesday before recovering some of the missing stocks on\nThursday and Friday. The S&P 500 is still 3% lower in August, with more\nthan 4% off the last record.<\/p>\n\n\n\n
10-year treasury yields also recorded a growth of about\n1.61% from about 1.54%. Bank stocks also rose – Bank of America rose 2%, while\nCitigroup saw a growth of 1.9% and J.P. Morgan Chase rose 1.8%.<\/p>\n\n\n\n
Last week, the yield fell to its lowest level in more than\nthree years and was briefly trading below its two-year counterpart. This is\nreferred to as a reversal of the yield curve and traders see it as a possible\nsignal that a recession may be in sight.<\/p>\n\n\n\n
US President Donald Trump said on Sunday he saw no recession\non the horizon in the United States after a volatile week for markets. “We\u2019re\ndoing tremendously well. Our consumers are rich. I gave a tremendous tax cut\nand they\u2019re loaded up with money.”<\/p>\n\n\n\n
Fears of a recession come as the United States and China\nenter the trade war. Over the past year, the two countries have imposed tariffs\non their goods worth billions of dollars. The United States also targeted\nHuawei in the trade war, making it difficult for US companies to deal with\nChinese communications.<\/p>\n\n\n\n
However, the Wall Street Journal and Reuters reported that\nthe Commerce Department is preparing to extend the license for 90 days, which\nwill allow Huawei to continue working with US companies to serve existing\ncustomers. The current agreement is due to expire on Monday.<\/p>\n\n\n\n
Chip makers rose in reports. Meanwhile, semiconductors and\nAMD rose more than 2% each while Micron technology gained 1.9%.<\/p>\n\n\n\n
Futures also rose after the Chinese central bank unveiled\nnew measures to further lower the real interest rate of enterprises in China in\na bid to support slowing economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
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