Stocks end higher on Wall Street even after late-day stumble
Stocks closed broadly higher on Wall Street Tuesday as more countries relaxed restrictions on businesses, raising hopes for a recovery from the historic plunge that is sweeping the global economy.
The S&P 500 rose just under 1% after losing about half of its early gains in a late-afternoon burst of selling. Technology and health care stocks accounted for much of the gains, which followed a strong showing in overseas markets.
Expectations for stronger demand for oil as more businesses get the green light to open helped drive crude oil prices sharply higher, extending oil's mini-rally after falling to record lows last month.
The S&P 500 gained 25.70 points, or 0.9%, to 2,868.44. The Dow Jones Industrial Average rose 133.33 points, or 0.6%, to 23,883.09. The Nasdaq climbed 98.41 points, or 1.1%, to 8,809.12.
Small stocks in the Russell 2000 index were doing even better than their larger rivals for much of the day, before shedding some of their gains by late afternoon.
The Russell 2000 rose 9.54 points, or 0.8%, to 1,273.51.
UK, US kick off post-brexit free trade talks amid outbreak
After a delay caused by the coronavirus pandemic, British and American negotiators have opened talks on a trade agreement that the U.K. government hopes will bring a post-brexit economic and diplomatic boost.
U.K. International Trade Secretary Liz Truss and U.S. Trade Representative Robert Lighthizer held a video conference call Tuesday at the start of the two-week round of negotiations.
The two sides, which each have about 100 officials involved, said in a statement that a trans-atlantic free trade agreement would “contribute to the long-term health of our economies, which is vitally important as we recover from the challenges posed by COVID-19.”
Britain left the European Union on Jan. 31 after almost half a century of membership.
US services sector shrinks for 1st time since 2009
The U.S. service sector plunged into contraction territory for the first time in a decade last month as the pandemic forced shutdowns and layoffs nationwide.
The Institute for Supply Management said Tuesday that its servicesector index fell to 41.8 in April, compared with a March reading of 52.5.
Any reading below 50 signals that the service sector, where the majority of Americans work, is in a contraction.