The three major indexes of the New York stock market soared together. It is interpreted that investor appetite for risk has strengthened as expectations for progress in negotiations increased after U.S. President Donald Trump decided to suspend a 50% tariff on the European Union (EU).
On the 27th (Eastern Daylight Time), the Dow Jones Industrial Average closed at 42,343.65, up 740.58 points (1.78%) from the previous session. The Standard & Poor's (S&P) 500 index rose by 118.72 points (2.05%) to 5,921.54, while the technology-focused Nasdaq Composite index jumped 461.96 points (2.47%) to close at 19,199.16.
The fact that the three major indexes closed higher together appears to be due to expectations that trade negotiations between the U.S. and the EU will progress. President Trump announced on the 25th that he accepted the request of Ursula von der Leyen, President of the European Commission, to postpone the imposition of the 50% tariff from June 1 to July 9.
All sectors rose. Technology increased by 2.55%, communication services rose by 2.14%, and consumer discretionary surged by 3.04%.
The 'Magnificent Seven,' referring to seven giant technology companies, all showed strength.
The Philadelphia Semiconductor Index, which consists of stocks related to artificial intelligence (AI) and semiconductors, surged 3.38%, breaking a seven-day streak of declines. All 30 stocks that make up this index rose.
Dan Ryan, managing partner of Sinirus Advisory, noted, "The heightened trade conflict has been resolved once again, and now a fast track will be laid for negotiations," expressing an optimistic outlook.