Despite trade woes, Wall Street holds steady
|Despite what could be seen as a significant escalation in trade tensions between China and the US with Beijing banning the sale of select Apple products, the Dow Jones managed to recover from significant losses during yesterday’s session and close out the day just a shade higher. Optimism over the economy was upbeat in light of another bumper JOLT job openings figure, whilst the idea that the Federal Reserve may not hike interest rates next week is also starting to find itself being priced in.
US equities seem unaffected by political risk, too. The idea that Donald Trump could be impeached continues to circulate but it’s failing to drag on stocks, although with only limited US economic data due for release in the day ahead, again there’s the potential for sentiment to turn negative, especially if we see no progress with the trade situation. A call between senior US and Chinese politicians reportedly did take place yesterday in a bid to map out next steps here, although with the hard deadline still almost three months away, if the idea is to use brinksmanship then there’s still some waiting to be done.
Ahead of the open we’re calling the DOW up 7 at 24,430 and the S&P down 2 at 2636.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.