Investing.com - Materials stocks helped lead the broader market to new highs midday as Wall Street was buoyed by the U.S. and Mexico coming to a bilateral trade deal.
U.S. President Donald Trump confirmed that Mexico and the U.S. had reached a bilateral agreement over issues in the renegotiation of the North American Free Trade Agreement (NAFTA), while at the same time suggesting dropping the “NAFTA” name.
Materials stocks, which struggle during periods of trade tensions, jumped higher. The S&P Materials Sector index rose about 1.5% at 11:45 AM ET (15:45 GMT).
Tech stocks also rallied, as the Nasdaq Composite topped 8,000 for the first time.
Advanced Micro Devices (NASDAQ:AMD) led the charge, rising about 7% after announcing a new graphics chip. Applied Materials (NASDAQ:AMAT) rose about 2.7% and Micron Technology (NASDAQ:MU) gained about 2.6%.
Meanwhile, cannabis stocks continued to be on a tear. The run started after Constellation Brands (NYSE:STZ), which owns Corona beer, said it would invest a further $4 billion in Canopy Growth (NYSE:CGC), Canada’s top cannabis producer.
Among stocks in the red, Chipotle Mexican Grill (NYSE:CMG) fell about 4% following an analyst downgrade.
Wedbush cut the stock to underperform from neutral, with a price target of $445, citing near-term risks to same-store sales, Reuters reported.
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.