U.S. markets opened at fresh record highs to start Monday’s action amid increasing optimism on trade. Commerce Secretary Wilbur Ross reiterated over the weekend that good progress was being made on a phase one deal with China and also suggested the U.S may not need to impose EU auto tariffs.
The Nasdaq was up for the 3rd time in 4 sessions after rising 0.6% while trading to an intraday high of 8,451. Fresh and lower resistance at 8,450-8,500 was cleared but held with additional hurdles at 8,600-8,650 on a close above the latter.
The Russell 2000 also gained 0.6% with the session peak reaching 1,602. Fresh and lower resistance at 1,600-1,615 was cleared but held with a close above the latter and the May 52-week high at 1,618 getting 1,625-1,640 in play.
The Dow rose 0.4% after testing an all-time intraday high of 27,517. New and lower resistance at 27,500-27,750 was cleared but held with a close above the latter signaling a possible run towards the 28,000 level.
The S&P 500 was also higher by 0.4% following the record run to 3,085 shortly after the opening bell. Fresh and lower resistance at 3,075-3,100 was cleared and held with melt-up potential towards 3,125-3,150 on a move above the latter.
Energy was the strongest sector after zooming 3.3% while Industrials and Financials added 1.2% and 0.9%, respectively. Utilities and Real Estate were the weakest sectors for the 2nd-straight session after giving back 1.3% and 1.1%, respectively.