Stock Market Jumps After Announcement Of New Trade Pact
Posted Monday, October 1, 2018 - 11:04 am
Stocks jumped early Monday after the United States and Canada reached a deal to revise the North American Free Trade Agreement, while shares of Tesla and General Electric rocketed higher on corporate leadership changes.
About 20 minutes into trading, the Dow Jones Industrial Average was at 26,672.46, up 0.8 percent.
The broad-based S&P 500 and tech-rich Nasdaq each gained 0.7 percent to reach 2,933.41 and 8,104.23, respectively.
Tesla surged 16.6 percent after Chief Executive Elon Musk settled a dispute with US securities regulators, allowing him remain at the helm, while giving up chairmanship of the board.
GE jumped 12.1 percent after announcing a new chief executive.
Known as the United States-Mexico-Canada Agreement (USMCA), the NAFTA rewrite was agreed just ahead of the deadline late Sunday night, after more than a year of tough negotiations to revamp a 24-year-old continental trade pact that President Donald Trump had labeled a disaster.
The trade breakthrough added to positive sentiment as the market begins to shift attention to the third-quarter earnings period, which begins in earnest in mid-October.
A note from Canaccord Genuity said there is “the potential for earnings beats to be above the norm” for the third quarter.
© Agence France-Presse