Stocks are back in favor as investors place bets that the U.S. will come out ahead in the ongoing trade war with China.
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The Dow Jones Industrial Average and the S&P 500 jumped over 1 percent, while the tech-heavy Nasdaq Composite rose over 2 percent.
|I:DJI||DOW JONES AVERAGES||26827.64||+57.44||+0.21%|
|I:COMP||NASDAQ COMPOSITE INDEX||8162.987048||+73.44||+0.91%|
Despite more currency moves by the Chinese, White House advisor Peter Navarro told FOX Business the country's leaders have agreed to stabilize the yuan.
"This is not something that is threatening to the global economy, its an adjustment. The good news is that President Trump, by branding China a currency manipulator has stopped China's currency's manipulation in its tracks. China has stated it will stabilize the yuan and that is the first step back to getting more stability in the currency markets." On Monday, the U.S. officially declared the country a "currency manipulator" after the yuan hit a fresh low overnight.
|GLD||SPDR GOLD SHARES TRUST - EUR ACC||139.79||-0.67||-0.48%|
The price of gold dipped after President Trump went after the Federal Reserve again blaming policymakers for a strong dollar, which in turn is making it harder for multi-national companies such as Caterpillar and Boeing. "The Fed’s high-interest rate level, in comparison to other countries, is keeping the dollar high, making it more difficult for our great manufacturers like Caterpillar, Boeing....." Trump tweeted. A stronger dollar tends to keep a lid on precious metals. If the dollar were to weaken, that could be bullish for gold.
In the extended session, shares of Uber fell 10 percent after posting weaker than expected quarterly sales. Rival Lyft enjoyed better results, rising about 3 percent, after beating estimates for second-quarter revenue and said the loss for 2019 would be less than its prior forecast.
|UBER||UBER TECHNOLOGIES INC.||31.41||-0.65||-2.03%|
The cable TV and movie giant Viacom beat estimates for quarterly revenue, helped by a rare growth in domestic advertising revenue.
In economic news, the number of Americans filing applications for unemployment benefits unexpectedly fell last week by 8,000 to a seasonally adjusted 209,000.
FOX Business' Ken Martin contributed to this report.