The US stocks opened Wednesday on a higher note as President Donald Trump signaled positive outcomes of their trade talks with China.
The Dow Jones Industrial Average jumped 0.5 percent to 23902 points after adding 115 points while the S&P 500 gained 0.3 percent. The Nasdaq Composite Index surged by 43.2 – or 0.6 percent – to 6941. The jump marked the market’s fourth consecutive upside session – the first time since Sep 14 – correcting 9% from its Dec 24 lows. However, the market remained 11% down from its 2017 peak.
The latest round of talks between the US and China ended Wednesday, reportedly on a positive note. The sectors posted oversold conditions in the previous financial quarter are doing well, particularly trade-delicate industrial stocks and energy shares. Commodities are also walking north as news about Federal Reserve deciding to deaccelerate its internet rate hikes comes to the surface. It allowed the yield on the benchmark US Treasury Index to rise by circa 2.72% from 2.71%, indicating that investors are more confident in the US growth.
The CBOE volatility index, VIX, which is a barometer of investor fear, dropped 0.5 to its one-month low at 20.
Border Wall, US Govt Shutdown
Rating company Fitch alerted Wednesday that the US will lose its triple-A sovereign rating if Trump continues to practice partial government shutdown.
“I think people are looking at the CBO (Congressional Budget Office) numbers. If people take the time to look at that, you
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