Market update: Tech rally causes record high

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This week in the stock market

  • Thursday, internet and technology stocks helped to carry the Nasdaq 100 index (NDX) to an all-time high in midday trading.
  • Signs that the U.S. and China are open to trade talks helped to boost most U.S. markets Thursday morning.
  • All three major U.S. markets saw their fifth increase in the past six sessions as of Thursday’s close.

The technology sector causes an all-time high

The Nasdaq 100 (NDX), which is made up of the 100 largest, most heavily traded U.S. companies listed on the Nasdaq stock exchange, reached an all-time high midday Thursday at 7,347.07. The index was boosted by internet and technology stocks, as it is heavily weighted in the technology sector. Microsoft Corp. (MSFT) +2.25%, Apple Inc. (AAPL) +1.72%, and Amazon (AMZN) +2.41% all saw increases at Thursday’s close as well.

All three of these technology stocks may also help boost MoneyLion Plus investment accounts, as they are currently the top three holdings within the ==Vanguard Total Stock Market ETF (VTI)==, in which Plus members are invested, as of 7/12/2018.

U.S. and China open to trade talks

Signs that the U.S. and China may be open to resume trade talks were announced on both sides Thursday morning. This came after the Trump administration announced earlier in the week, plans to impose trade tariffs on $200 billion of Chinese imports. The threat may have helped to persuade the world’s two largest economies to continue discussing their differences.

Discussions around trade seem to pop up in the news more and more frequently, and it may feel tiring. However, trade does have a major impact on the markets, and it’s important to take notice. When the U.S. imposes trade tariffs on a country, that country often retaliates with tariffs on U.S. exports. These tariffs have major impacts on U.S. businesses as well as consumers, as prices of goods will likely rise. The rise in prices is caused by an increase in the cost of goods for manufacturers, which trickles down to consumers. Two companies that have been heavily impacted by trade fears are Boeing CO. (BA) +1.61% and Caterpillar Inc. (CAT) +1.96%, which both saw increases at Thursday’s closing as trade tensions eased.

Five out of the six past sessions saw increases

The Dow Jones Industrial Average (DJIA) +0.91%, S&P 500 (SPX) +0.87%, and the Nasdaq Composite Index +1.39% were all up at Thursday’s close, which means that five out of the past six trading days saw increases. The decline in Wednesday’s session was likely due to trade tensions between the U.S. and China, which shows the influence that politics and ==consumer sentiment== have on the markets.

The ==Vanguard Total Stock Market ETF (VTI)==, in which Plus members are invested, seeks to track the CRSP US Total Market Index, which represents approximately 100% of investable companies in the U.S. The three major U.S. stock indexes ( DJIA, S&P, and Nasdaq) are a fair representation of how the overall stock market is performing, so keep your eyes peeled.

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Did you miss last week’s market update? Check it out. ==Market update: The U.S. and EU attempt a deal==

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