The U.S. stock market saw minimal gains today as investors renewed trade optimism surrounding U.S. and China's negotiations. A Chinese Official Wednesday stated that the country would be open to a partial trade deal with the U.S. as long as no additional tariffs are added to Chinese goods. This comment came after the Trump administration's blacklist of Chinese companies and travel bans.
Here's how the U.S. stock market settled after mid-week trading:
S&P 500 Index (SPY): +0.91% or 26.34 points
Dow Jones Industrial Average (DIA): +0.70% or 181.97 points
NASDAQ Composite Index (QQQ): +1.02% or 79.96 points
As two of the largest economies in the world gear up for trade talks in Washington D.C. Thursday, stocks show that investors are hoping that the meetings will lead to agreements rather than more tariffs. If no agreements are made, U.S. tariffs on about $250 billion of Chinese goods will increase to 30% on October 15, following a 25% increase from September's round.
In U.S. stock sector performance, all 11 sectors have seen continued growth up into the market close Wednesday. Top gainers include Information Technology +1.53%, Materials +1.12%, Energy +1.12%, Financials +1.09%, Consumer Discretionary +1.02%, and Industrials with +0.96%. Most, if not all, sectors are increasingly pressured by the ongoing trade tensions that are enveloping the economy.
In oil prices, Brent Crude prices increased 0.36% Wednesday, resting at $58.33 per barrel. West Texas Intermediate also rose 0.06%, pricing at $52.60 per barrel. Oil prices increased as military action from Turkey begins in Syria effected the market. Analysts said that the attacks could impact the economy of the oil-producing Kurdistan region in Iraq, a move that would further increase energy prices. Saudi Arabia's Aramco is also moving forward with its IPO plans, with shares possibly available as early as the year's end.
As China and the U.S. finally move forward with new trade negotiations, U.S. markets are anticipating positive trade news and futures. Hopefully there will be moves more towards agreements by the end of the week so that the trade war can finally rest. Thursday's market summary will follow the news surrounding the first day of official talks.
- https://www.bloomberg.com/news/articles/2019-10-09/china-open-to-partial-u-s-trade-deal-despite-tech-blacklist
- https://in.reuters.com/article/global-oil-int/oil-steady-as-military-action-in-syria-boosts-prices-crude-inventories-weigh-idINKBN1WO041?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FINbusinessNews+%28News+%2F+IN+%2F+Business+News%29
- https://markets.businessinsider.com/commodities/news/saudi-aramco-ipo-proceeding-after-oil-strike-prospectus-due-october-2019-10-1028588099