Wall Street kicked off July with a record high for S&P 500 index after a cease-fire in the U.S. trade war with China put investors in a buying mood.
The milestone marks the second time in less than two weeks that the benchmark index closed at a record high. The S&P 500 is now up 18.3% for the year.
The broad rally came after the world’s two biggest economies agreed over the weekend to resume negotiations. The truce, which involves the U.S. holding off on imposing new tariffs on $300 billion in Chinese goods, gave financial markets reason to breathe a little easier.
The new tariffs would have come on top of existing tariffs that remain in place. Investors have been worried the fallout from the tariffs could hurt global economic growth and corporate profits. Those concerns prompted the Federal Reserve last month to declare its willingness to cut interest rates if the dispute hurts the U.S. economy.
“It’s really a de-escalation of the tough talk we’ve heard from both sides on tariffs,” said Jeff Zipper, managing director at U.S. Bank Private Wealth Management.
The S&P 500 index rose 22.57, or 0.8%, to 2,964.33. The index last set a record high on June 20.
The Dow Jones Industrial Average gained 117.47 points, or 0.4%, to 26,717.43. The Nasdaq composite rose 84.92 points, or 1.1%, to 8,091.16.
Cyberattack hits Georgia state agency web site
A Georgia state agency says a cyberattack has forced it to shut down some court websites.
News outlets report hackers demanding a ransom infected computers with malware at the Georgia Administrative Office of the Courts. Agency spokesman Bruce Shaw said Monday that officials have “quarantined our servers and shut off our network to the outside.”
It wasn’t immediately clear how many Georgia courts were affected, or to what degree their operations were interrupted. The agency’s website, www.georgiacourts.org , was offline Monday. Websites for the Georgia Supreme Court and court clerks in the state’s larger counties appeared to be operating.
The Georgia Administrative Office of the Courts provides computer applications to some local probate and municipal courts. Shaw said the agency doesn’t store private information aside from what’s in public court documents.
Building drops 0.8% in May
Spending on U.S. construction projects fell in May, the first drop in six months, as home building fell for a fifth straight month.
The Commerce Department reported Monday that spending fell 0.8% in May, the first decline since a 1.3% drop in November, to a seasonally adjusted annual rate of $1.29 trillion. Spending In April was revised up from a flat reading to a small gain of 0.4%.
The weakness in May was widespread with spending on single-family homes and apartments down 0.6% while nonresidential construction fell 0.9%. Spending on government projects also dropped 0.9%, led by a decline in construction spending by the federal government.
Spending on residential construction has been weak for a number of months but builders are hopeful that declining mortgage rates will spur a rebound.
The 0.6% decline in residential construction reflected a 0.8% fall in spending on new single-family homes partially offset by a 1.9% rise in the smaller apartment sector.
Shortline railroad in $6.7 billion deal
DARIEN, Conn. – Railroad operator Genesee & Wyoming is being taken private by Brookfield Infrastructure and GIC in a deal valued at about $6.37 billion.
Genesee & Wyoming Inc. owns 120 short line railroads, mostly in North America, with operations in Europe and Australia. Through its subsidiaries worldwide, it provides transportation infrastructure services over more than 26,000 kilometers of track.
G&W shareholders will receive $112 in cash for each share held. The companies put the deal’s value at $8.4 billion, including debt.
The transaction is expected to close by year-end or early next year. It needs approval from G&W stockholders, the Committee on Foreign Investment in the United States, the U.S. Surface Transportation Board, and certain competition and antitrust approvals.