S&P 500 reaches new record high as China tensions ease further

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Stocks kicked off a busy week on a high note as investors looked forward to the signing of a U.S.-China trade deal and the start of fourth-quarter earnings season later this week.

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4:07 p.m. ET: Stocks end higher on easing China tensions

Here’s where the major indices settled as of 4:07 p.m. ET:

• S&P 500 (^GSPC): +0.70% or +22.77 points to 3,288.12

• Dow (^DJI): +0.29% or +82.40 points to 28,906.17

• Nasdaq (^IXIC): +1.04% or +95.07 points to 9,273.93

• Crude oil (CL=F): -1.00% or -0.59 to 58.45 a barrel

• Gold (GC=F): -0.63% or -9.80 to 1,550.30 per ounce

12:14 p.m. ET: S&P 500 hits record high after reports U.S. will remove China’s designation as a currency manipulator

The S&P 500 touched a fresh record high shortly after noon on Monday following reports that the U.S. is planning to remove China from a list of countries designated as currency manipulators. Outlets including Bloomberg and CNBC reported the decision, citing unnamed people familiar with the matter.

The Treasury Department had designated China a currency manipulator in early August, in a decision that at the time had sent signaled escalating U.S.-China tensions and sent financial markets roiling. This came after China allowed the yuan to weaken past the psychologically important level of 7 per dollar for the first time in more than a decade.

The decision to lift this label is expected to be formalized in a forthcoming Treasury Department report, Bloomberg reported.

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11:05 a.m. ET: Stocks hold in the green

The three major domestic stock indices held in positive territory about an hour-and-a-half into Monday’s session.

The materials and real estate sectors led gains in the S&P 500, while health-care remained slightly negative. Dow Inc. (DOW) and Cisco (CSCO) led advances in the 30-stock Dow and were both up more than 1% during intraday trading.

Here were the main moves in markets, as of 11:05 a.m. ET:

• S&P 500 (^GSPC): +0.37% or +12.04 points to 3,277.39

• Dow (^DJI): +0.21% or +59.13 points to 28,882.90

• Nasdaq (^IXIC): +0.46% or +42.49 points to 9,221.35

• Crude oil (CL=F): -1.2% or -$0.71 to $58.33 a barrel

• Gold (GC=F): -0.51% or -$7.90 to $1,552.20 per ounce

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10:09 a.m. ET: Fed’s Rosengren sees ‘two risks to the forecast’ worth watching

The potential for a sudden build-up in inflation and financial asset bubbles are two key risks to the 2020 economic outlook, Boston Fed President Eric Rosengren said during a speech in Connecticut on Monday.

“More rapid than expected inflation remains a risk of running the economy with accommodative monetary policy and tight labor markets,” he said in the prepared text of the speech. Emphasis his.

To the second point, Rosengren said that “persistently low interest rates could lead consumers and firms to take on riskier financial investments in search of better returns, increasing asset prices to unsustainable levels.” Rosengren had opposed all three of the Federal Reserve’s interest rate cuts last year.

Rosengren acknowledged that there are other downside risks to the outlook as well, including around trade and slowing economic growth.

“But I see the potential risks to inflation and financial stability as somewhat more concerning, overall,” he said.

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9:37 a.m. ET: Tesla leaps above $500 per share

Shares of Tesla (TSLA) jumped above $500 each for the first time ever as momentum in the automaker’s stock rolled on.

The stock’s more than 4% advance was supported by a bullish call from Oppenheimer. Analyst Colin Rusch raised his price target on shares of Tesla to $612 per share from $385 previously, implying more than 20% appreciation from Friday’s closing prices. Rusch’s price target represented the highest among major Wall Street analysts to date.

Additionally, China announced over the weekend that it would not be reducing subsidies for electric cars this year on the same timeline as last year, in a move seen to help support demand for new energy vehicles. Tesla began delivering Model 3 vehicles built in China to customers in the country earlier this month.

Shares of Tesla are up about 44% over the past year.

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