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David Becker
Financial concept of growth on the American Stock Exchange.

US stock surged on Tuesday following Tweets from US President Donald Trump who said that he planned on having an extended conversation with Chinese President Xi at the G20 gathering later this month. The markets are unsure whether this means there will be more people to discuss trade or a longer conversation, but riskier assets moved higher led by large cap tech shares.

Most sectors were higher, led by technology shares, Utilities and Consumer Staples bucked the trend. Crude oil prices rebounding sharply, as Saudi Arabia said they would cut output and asked other OPEC countries to consider output cuts ahead of the next OPEC meeting. These also ask those who were producing more oil to cut back on their production.

Apple shares rallied more than 2%, and Alphabet was up more than 1.5%. Facebook shares surged on the open but gave back most of its gains following an announcement that the company was launching a cryptocurrency called Libra.

Facebook Reveals Libra

Facebook formally revealed plans to launch a cryptocurrency called Libra, promising a secure blockchain-based payment system backed by hard assets. Facebook named early Tuesday a series of big, corporate partners, including financial-services heavyweights Mastercard Inc. and PayPal Holdings Inc. and tech giants Uber Technologies Inc. and Spotify Technology S.A. that it said will help it create a secure, scalable and reliable cryptocurrency.


Boeing Lands Deal

Boeing Co. won a landmark 737 MAX order from British Airways parent IAG on Tuesday, ending a sales drought in the wake of the grounding of the aircraft following two fatal crashes. International Consolidated Airlines Group SA, as IAG is formally known, said at the Paris Air Show it had signed a letter of intent for up to 200 Boeing 737 MAX planes. It would buy the 737 MAX 8, the model that crashed in October and March, as well as the larger 737 MAX 10.

ECB President Draghi Makes Dovish Commentary

The Euro slipped on Tuesday ahead of Wednesday Fed meeting as ECB President Mario Draghi said additional stimulus is needed if economic conditions do not improve. As the dollar gained traction President Trump began to tweet about how unfair it is that the dollar is gaining strength because of European weakness and their central banks willingness to drop interest rates. Trump wants the Fed to begin to cut rates and to start quantitative easing to buoy the US economy ahead of the US elections.

Draghi noted that the ECB has the capability to further reduce interest rates as well as quantitative easing as part of their arsenal. It appears that Draghi is setting the table for his successor to be able to use additional monetary policy to boost economic growth.

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