Both the Nasdaq 100 and the S&P 500 are trading back in positive territory for the year as US inflation unexpectedly slows and China lowers tariffs on US goods", says Axel Rudolph, Senior Technical Analyst at online trading platform IG.
US stock indices back in positive territory for the year
Who would have thought that within a matter of weeks US stock indices would be trading back in positive territory for the year? Yet, here we are. Slowing US inflation, both headline and core, coupled with China's Finance Ministry announcing a pause in additional tariffs - effectively lowering tariffs on US goods from 34% to 10% - helped heave the Nasdaq 100 and S&P 500 back into positive territory for the year. The Dow Jones Industrial Average is closely following suit but the small cap Russell 2000 still lags behind, trading around 5% lower when compared to the beginning of the year. The German DAX index continues to trade near this week's record high amid a sharp rebound in the country's investor sentiment with only the FTSE 100 trading slightly lower on the day in Europe despite UK wage growth coming in slightly below estimates.
Oil price continues to rise while gold slips
The rally off its 4-year low amid supply concerns and ongoing tensions between India and Pakistan puts the oil price on track for its fourth straight day of gains. The price of gold managed to find support slightly above last week's low as the US dollar rally seems to be momentarily running out of steam.
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