(Reuters) - Technology stocks pushed Wall Street’s three main indexes to record highs on Monday, as hopes of a U.S.-China trade deal and an improving domestic economy boosted risk appetite.
Washington and Beijing said on Friday they had made progress in defusing an economically damaging trade war, with U.S. officials indicating that a deal could be signed this month.
Adding to the upbeat mood, Commerce Secretary Wilbur Ross said on Sunday licenses for U.S. companies to sell components to China’s Huawei Technologies Co would come “very shortly”.
Eight of the 11 major S&P 500 sectors were higher, with the energy sector .SPNY gaining the most as oil prices rose, while technology shares .SPLRCT provided the biggest boost on the back of a rally in trade-sensitive chip stocks.
The Philadelphia Semiconductor index .SOX touched a fresh record high, with the index last up 1.4%.
“There is growing enthusiasm over a trade deal, as progress is being made in these talks,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“Investors are betting that some sort of a deal is on its way, not a whole deal but something that will at least avoid a recession. And markets can live with that,” he added.
The third-quarter earnings season has been a key driver for the markets, with 76% of the 360 S&P 500 companies that have reported results so far beating profit expectations, according to Refinitiv data.
Investors also took comfort from data on Friday that showed U.S. jobs growth slowed less than expected in October.
A report on Monday, however, showed new orders for
