US stocks move broadly higher; Dow jumps 200 points
NEW YORK (AP) — U.S. stocks headed broadly higher in early trading Tuesday on Wall Street after comments from Mexico's foreign minister injected some optimism into a developing trade dispute.
Marcelo Ebrard said Mexico can likely make a deal with the U.S. when officials meet on Wednesday and stave off U.S. plans to place 5% tariffs on Mexican goods. President Donald Trump plans on imposing the tariffs beginning June 10 as part of a broader immigration dispute with Mexico.
The threat of a trade battle with Mexico comes with investors already worried about an escalating trade war between the U.S. and China. Investors spent May fleeing to safer holdings, sending the market to its first monthly loss of the year.
Strong gains by technology stocks Tuesday led the broader market higher and marked a sharp turnaround for the sector. On Monday, technology companies slumped over concerns that several internet companies could face more scrutiny from antitrust regulators.
Chipmakers were all broadly higher. Micron rose 2.9% and Texas Instruments rose 2.2%. Other technology companies rallied. Microsoft rose 1.3% and Apple rose 1.2%.
Facebook held back gains for internet and communications companies. The stock fell 1.2% after a top European Union legal adviser said that social media networks could be ordered to take down anywhere in the world any text, photo or other media ruled to be defamatory by a court.
Banks also posted gains as lower bond prices pushed yields on the 10-year Treasury higher. Banks benefit from higher yields because they can charge more interest on loans. Bank of America rose 2.3% and Citigroup rose 2.4%.
Utilities lagged the market in another sign that investors were shifting funds away from safe-play holdings and into riskier, but potentially more profitable investments.
KEEPING SCORE: The S&P; 500 index rose 0.8% as of 10:10 a.m. Eastern time. The Dow Jones Industrial Average rose 229 points, or 0.9%, to 25,049. The technology-heavy Nasdaq composite rose 0.9%.
OVERSEAS: European stocks rose broadly following a report that the unemployment rate fell to its lowest level in more than a decade in the 19 countries that use the euro. Germany's DAX jumped 1.2% and the CAC 40 in France rose 0.4%.
BOXED IN: Online storage provider Box fell 11.1% after giving investors a weak revenue forecast for the year. The company cited a shift to longer sales cycles. The company also said it is "no longer prudent" to give a timeframe for reaching a $1 billion revenue milestone.
LINGERING LUSTER: Luxury jeweler Tiffany rose 3% after beating Wall Street's profit forecasts for the first quarter. Investors focused on the solid profit figures amid a very mixed report.
A key figure measuring sales at established stores fell short of forecasts and Tiffany warned that higher costs from tariffs could cut into its profit.