U.S. markets were slightly weak to start Tuesday’s session but reversed course quickly after news broke that China said it will hold trade talks by phone with the U.S. in two weeks. Also, the United States Trade Representative office said tariffs on some goods will be delayed until December 15th from the original September 1st deadline.
The apparent progress on the U.S. trade front helped relieve some market jitters as the major indexes pushed prior resistance levels. Volatility eased as well after closing back below 20 and a key level of support.
The Nasdaq jumped 2% after trading a high of 8,065 shortly after the opening bell. Near-term and lower resistance at 8,000-8,050 was cleared and held with a close above the latter and the 50-day moving average getting 8,100-8,150 back in focus.
The S&P 500 soared 1.5% following the morning peak at 2,943 and close back above the 2,900 level. Lower resistance at 2,925-2,950 was tripped and held with a close above the latter and the 50-day moving average leading towards another run at 2,975-3,000.
The Dow also rallied 1.5% after trading to a first half high of 26,426. Near-term and lower resistance at 26,400-26,600 was cleared but held with a close above the latter and the 50-day moving average being a bullish signal for a retest to 26,800-27,000.
The Russell 2000 rose 1.1% following the opening pop to 1,522. Prior and lower resistance at 1,515-1,525 was breached but held with a close above the latter and the 200-day moving average getting 1,535-1,545 and the 50-day moving average back in play.
Technology zoomed 2.5% to lead sector strength while Consumer Discretionary and Communication Services gained 1.6% and 1.5%, respectively. There was no sector weakness.