US stocks held steady after President Donald Trump and North Korea leader Kim Jong Un signed an agreement aimed at establishing a “peace regime” on the Korean peninsula and better relations between the two states.
Lack of detail in the agreement about the path to denuclearisation on the peninsula kept the market’s gain in check.
The Dow Jones industrial average was little changed, weighed down by losses in UnitedHealth and Goldman Sachs. The S&P 500 added 0,2 percent as consumer discretionary and utilities stocks led the index higher.
The Nasdaq composite rose 0,55 percent thanks to gains in Facebook, Apple, Amazon, Netflix and Google-parent Alphabet.
“I don’t think there’s any surprises here, which is why the markets aren’t reacting that much,” said Paul Tudor Jones, the famed and reclusive hedge fund manager who called the October 1987 market crash. “We’ve been trading it the past 12 months leading up to this point so this is semi-anticlimactic.”
However, Tudor Jones added that a big rally in stocks was coming later this year.
Trump said the sanctions will remain on Pyongyang remain in place until “the menace of nuclear weapons” is gone. Japan’s Nikkei 225 rose 0,3 percent on hopes for greater peace in the region.
AT&T shares rose 0.3 percent Tuesday ahead of US District Court Judge Richard Leon’s decision on whether to permit its $85 billion deal for Time Warner. While the government or AT&T could appeal Leon’s decision, the ruling will have far-reaching implications for dealmaking across the telecommunications and media world.