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Tech, energy lead Wall Street rebound as trade worries ease

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Reuters NEW YORK
Last Updated : Jun 27 2018 | 2:55 AM IST

By April Joyner

NEW YORK (Reuters) - U.S. stocks rose on Tuesday as gains in the technology and energy sectors helped Wall Street recover from a sharp sell-off a day earlier on spiralling global trade tensions.

Technology stocks <.SPLRCT> added the most gains to the S&P 500 after having slid on Monday upon conflicting statements from Trump administration officials on restrictions on foreign investment in U.S. technology firms. Apple Inc , up 1.7 percent, snapped a three-day losing streak.

Energy <.SPNY> was the greatest percentage gainer among the S&P's 11 major sectors, rising 1.6 percent as Washington pushed allies to halt imports of Iranian crude, which lifted oil prices more than 2 percent. [O/R]

"There's a relief rally in technology, and there's a fundamentals rally in energy," said Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas.

The Dow Jones Industrial Average rose 85.16 points, or 0.35 percent, to 24,337.96, the S&P 500 gained 10.86 points, or 0.40 percent, to 2,727.93 and the Nasdaq Composite added 40.73 points, or 0.54 percent, to 7,572.73.

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General Electric Co shares rose 8.3 percent, the greatest percentage gain on the S&P 500 and the stock's biggest one-day gain in more than three years. The company said it would spin off its healthcare business and divest its stake in oil-services company Baker Hughes .

Shares of U.S. homebuilder Lennar Corp jumped 4.3 percent as strong housing demand helped the company report better-than-expected quarterly results.

Harley-Davidson Inc shares were marginally lower, down 0.1 percent, after U.S. President Donald Trump threatened the company with higher taxes. Trump's threat came in response to the company's announcement on Monday that it would move production from the United States to its international facilities for some of its motorcycles shipped to the European Union.

Advancing issues outnumbered declining ones on the NYSE by a 1.93-to-1 ratio; on Nasdaq, a 1.66-to-1 ratio favored advancers.

The S&P 500 posted five new 52-week highs and nine new lows; the Nasdaq Composite recorded 63 new highs and 47 new lows.

(Additional reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta and Chizu Nomiyama)

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First Published: Jun 27 2018 | 2:42 AM IST

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