US Stocks Start Week Higher on Monday as President Biden Considers Easing China Tariffs

Last Updated: Monday, May 23, 2022 5:01 PM | MT Newswires

US stocks were higher on Monday following positive commentary from President Joe Biden concerning tariffs on Chinese goods imposed by the Trump administration.

The Dow Jones Industrial Average climbed by 2% to 31,880.24, while the S&P 500 was up by 1.9% to 3,973.75. The Nasdaq Composite was 1.6% higher at 11,535.28.

Financials, energy and technology stocks led gainers, with all sectors in the green.

The US 10-year yield rose by 7 basis points to 2.86%.

West Texas Intermediate crude-oil futures rose $0.25 to $110.53 a barrel.

During a news conference with Japanese Prime Minister Fumio Kishida, US President Joe Biden said he is considering easing tariffs on Chinese goods that had been imposed by the Trump administration.

Separately, President Bident said the United States would intervene militarily if China attempts to take Taiwan by force. The remarks appear to deviate from a policy of deliberate ambiguity traditionally held by Washington. The White House, however, quickly downplayed the comments, saying they don't reflect a change in US policy.

On Wednesday, investors will parse the minutes from the Federal Open Market Committee's meeting on May 4 in which it raised the federal funds rate's target range by 50 basis points to 0.75%-1% and signaled further increases of 50 basis points each in its next two meetings.

JPMorgan Chase & Co. (JPM) raised its full-year 2022 outlook for net interest income, excluding markets, to reach more than $56 billion from original projections in January of roughly $50 billion. The revised outlook assumes that the Federal Reserve will raise short-term rates to 3% by the end of the year, high single-digit loan growth, and a "modest" securities deployment. Shares of JPMorgan Chase surged 6.2%, among the top performers on the S&P 500 and the Dow.

Meanwhile, VMware (VMW) rallied Monday, rising 25%, following a Bloomberg report, citing unnamed sources, that the enterprise software firm is in talks to be acquired by chipmaker Broadcom (AVGO). Broadcom was 3.1% lower.

Gold was up $9.40 to $1,857.80 per ounce and silver was up $0.09 to $21.76 per ounce. Among energy ETFs, the United States Oil Fund rose 0.4% to $81.97, and the United States Natural Gas Fund was up 8.4% to $30.07.

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