The United States stocks enjoyed solid gains on June 4. The upside was led by consumer and technology stocks. The Nasdaq Composite closed at record highs for the maiden time since March 12. It went up by 0.7 percent or 52.13 points to reach 7,606.46. The S&P 500 went up by 0.5 percent or 12.25 points to touch 2,746.87. Among its 11 sectors, seven closed higher. Technology stocks, consumer stocks, and discretionary stocks led gains. They went north by one percent. A 0.7 percent increase was also achieved by Dow Jones Industrial Average or DJIA which went up by 178.48 points to reach 24,813.69.
Issues related to global trade tensions are put off for now. Prime among them is the breaking down of trade discussions between China and the United States. The weekend ended with both sides failing to arrive at an agreement. There are thus ample indications that a full-blown trade war could begin between the countries at any moment.
Strategists concur the US is going through an excellent period right now. They point out that the latest economic reports show that consumers have finally gained confidence and enjoy extra income to spend on expensive items. Things are looking up for the retail sector and also the market. In contrast, factory orders in the United States dropped by 0.8 percent in April. These were the effect of the decline in the commercial aircraft space.
The economy now is in a much more stronger position than before. For investors, pictures were rosy as the data on the US jobs released on June 1 showed that the American economy is much better than expected. This encouraged investors to transfer their money on to riskier investment vehicles like stocks. Stock markets earlier fell to the Italian political situation and money at that time went to bonds.
Finance ministers from the United Kingdom, Canada, Japan, and Germany issued a rare and sharp rebuke to the United States during a meeting of the G-7 countries on June 2. They expressed unanimous disappointment and concern about the decision taken by President Trump on the issue of tariffs being imposed on metal imports from major allies of the United States. It is anticipated that the G7 leaders will discuss trade and tariffs when talks will be held in Canada on June 8 and June 9.