Midday Market Update: Stock Gains Hold, Led By Apple, Cyclicals

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Stock gains held steady and strong Tuesday midday, as the President tweeted that the U.S. and China are on track for their trade deal. 

All three major U.S. indices rose, with the S&P 500 up about 1% by midday, higher than the morning’s gain of 0.8%. The 10-Year Treasury yield rose to 0.72%. Yields rise when prices fall. 

After a rough night of futures trading, with U.S. contracts down more than 1% a Trump tweet on trade with China juiced the market. 

Economically sensitive classes of stocks participated in the rally. Oil, banks and the Russell 3,000, a small cap index all rose around 1%, as a trade deal would be a major positive for corporate confidence and investment. 

But shares of big tech companies, which have a heavy market cap weighting in the S&P 500, were also adding major support to the indices. S&P 500 technology ETF  (XLK) - Get Report, about 20% weighted towards Apple  (AAPL) - Get Report, rose 1.6%, with Apple up 2.7%. 

Apple has had a big run this week, as analysts have raised their price targets on the back of more bullishness on the potentially multi-year 5G device cycle as well as services bullishness. Plus, Apple announced it will in-source chips for its Macs, reducing costs, a material tailwind for earnings. 

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