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Financial sector supported Dow Jones and S&P 500

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The US indexes started weekly trading on green territory thanks to the financial sector and the strong performance of Berkshire Hathaway. The blue-chip index Dow Jones Industrial Average grew by 190.87 points (0.76%), reaching a level of 25,461.70 points. In turn, the S&P 500 rose by 0.56% to 2,738.31 points.

Berkshire Hathaway’s Class B shares rose by 4.7% after the conglomerate announced last week redemption of stocks worth 1 billion USD. The financial sector as a whole increased by 1.4%.

On its turn, Citigroup, Bank of America and J.P. Morgan Chase rose by 2.09%, 0.31% and 0.66%, respectively.

On this background, the technology index Nasdaq Composite finished the negative territory session with a fall of 0.4% to a level of 7,328.85 points. Apple and Amazon stocks declined by 2.8% and 2.3%, respectively.

Apple’s decline is due to the fact that Rosenblatt Securities lowered the company’s rating due to expectations of lower sales of iPhone phones. Amazon’s stock declined after the US President Donald Trump said the administration was investigating the trader for possible antitrust violations.

Wall Street investors also expect the upcoming midterm elections for the US Congress, which could also trigger turbulence in capital markets.

The Democratic Party is expected to regain control of the House of Representatives, while Republicans retain a slight majority in the US Senate. Such a result is perceived as positive for the markets, as the US stocks traditionally perform well when there is a division of power between the parties. If Republicans retain their majority in both chambers, it could give the stock a short-term boost as the chance of further tax cuts will be increased. However, in mid-term there will be some corrections.

The investors continue to be affected by the uncertainty of the trade front. On Monday, Chinese President Xi Jinping re-opposed protectionist policies in his speech and promised China to continue opening up to the world.

On commodity markets, the crude oil price moved down. The American variety WTI is trading for 62.78 USD per barrel, representing a decrease of 0.57%. The Brent variety reached 72.72 USD per barrel, which is down by 0.15%.