U.S. Stocks have fallen today after a Bloomberg report that the Trump administration is considering limiting investments in China, including delisting Chinese companies from U.S. stock exchange and reducing Americans' exposure to Chinese investments in government pension funds.
Here's how the stock market closed after a long week:
S&P 500 Index (SPY): -0.53% or 15.66 points
Dow Jones Industrial Average (DIA): -0.25% or 67.95 points
Nasdaq Composite Index (QQQ): -1.13% or 91.03 points
By the week's end, the impeachment inquiry from U.S. House Democrats has progressed and is going to continue to impeachment proceedings as early as next week. These hearings could impact markets in the event that is stops President Donald Trump's ability to progress trade negotiations and other geopolitical economic matters. The impeachment process, however, could take months to unfold if Trump continues to legally battle Congress.
CNBC this morning reported that high-level trade talks between the U.S. and China are set to take place in Washington, D.C. on October 10-11. It is now time to just wait and see what happens surrounding trade, for many of the actions throughout the past few months seem to be leverage tactics to push the opposers hand in the final agreement of this long war.
In U.S. economic data released today, the Federal Reserve's metric for tracking underlying inflation, the Personal Consumption Expenditures (PCE), increased at a slower-than-expected-pace in August. PCE tracks the prices of goods and services with a separate reading excluding food and energy prices that are heavily affected by trade and circumstance. Personal U.S. income had risen to 0.4% in August from 0.1% reading in July, which brings the income reading back to former levels.
In oil news, global oil prices have rebounded today after Trump denied a claim by Iranian President Hassan Rouhani that the U.S. offered to remove all sanctions on Iran in exchange for further negotiations. Saudi Arabia and Yemen also agreed to a partial cease-fire Friday, which lowered prices. West Texas Intermediate crude futures slipping 1.05% to $55.82 per barrel and Brent crude futures decreased 1.26% to $60.96 per barrel.
In U.S. stock news, most sectors are reading red at the end of the week mostly because of the impeachment inquiry's progress. The biggest slips are Real Estate -0.91%, Information Technology -1.40%, and Communication Services -1%. The only sector that saw gains today was Financials +0.13%, with banks being the driving increase.
Monday's market update will continue to follow the impeachment proceedings effect on U.S. and global stock markets.
- https://www.bloomberg.com/news/articles/2019-09-27/white-house-weighs-limits-on-u-s-portfolio-flows-into-china-k12ahk4g
- https://www.cnbc.com/2019/09/26/china-trade-talks-set-to-resume-oct-10.html
- https://www.bea.gov/news/2019/personal-income-and-outlays-august-2019
- https://www.wsj.com/articles/saudi-arabia-agrees-partial-cease-fire-in-war-shattered-yemen-11569580029