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| The street sign for Wall Street is outside at the NYSE before the closing bell at the New York Stock Exchange in New York City on Monday. The Dow Jones Industrial Average was up over 300 points with one hour to go before the close. Photo by John Angelillo/UPI | License Photo |
By Ray Downs, UPI
The Dow Jones Industrial Average had its best day in a month on Monday despite worries over a potential trade war between the United States and China.
[post_ads]The Dow added 320.11 points, or 1.3 percent, to close at 24,776.59. The best-performing stocks in the index were J.P. Morgan Chase, Goldman Sachs and Caterpillar, CNBC reported.
While there is still trepidation over a retaliatory tariffs between the United States and China, experts were optimistic the two superpowers will resolve their issues.
"Given the rhetoric over the past few weeks, it seems like the probability of a trade war has increased. However, in the short term I still think there's a relatively low probability that one will actually occur," Scott Wren, senior global equity strategist for Wells Fargo Investment Institute, told MarketWatch. "And in the meantime, U.S. economic data has been good, and the Street knows this will be a good year for earnings."
According to The Wall Street Journal, investors said a big boost to Monday's data was the jobs report on Friday, which indicated the economy was going in the right direction with brisk hiring numbers and slow wage growth.
Another reason for the strong stock performance Monday was Federal Reserve data that showed consumer borrowing increased $24.6 billion in May to a seasonally adjusted $3.9 trillion, which amounts to a spike of 7.6 percent -- the fastest pace of credit growth since November, MarketWatch reported.
The other top two indexes also showed increases Monday.
The S&P 500 increased 24.35 points, or 0.9 percent, to close at 2784.17. And the Nasdaq Composite jumped 67.81 points, or 0.9 percent, to close at 7756.20.
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