Wall Street ends higher on tech rally; investors eye Beijing talks

💡 Tech stocks led the charge as investors turned their attention to the upcoming Beijing talks.

The US stock market ended higher on Thursday, driven by a rally in technology stocks, as investors shifted their focus to the upcoming talks between the US and China in Beijing. The S&P 500 rose 2.3% for the day, while the tech-heavy Nasdaq Composite climbed 3.2%.

Market Sentiment Shifts

The market's shift towards tech stocks was largely driven by optimism over the potential for a trade deal between the US and China. Tech giants such as $NVDA and $AAPL led the charge, with both stocks rising 5.5% and 4.2% respectively. The 10-year Treasury yield also fell to 3.8% as investors sought safer assets.

Global Market Reaction

The rally in US stocks was mirrored in other markets around the world. The European Stoxx 600 index rose 1.8%, while the Nikkei 225 in Japan climbed 2.1%. Investors are now eyeing the upcoming talks in Beijing, where US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will meet with Chinese Vice Premier Liu He.

Economic Data Releases

The market's reaction to the upcoming talks was also influenced by recent economic data releases. The US unemployment rate fell to 3.6% in April, beating expectations, while the ISM manufacturing index rose to 52.8%, indicating a strong expansion in the sector.

What It Means for Investors