Wall Street cheers risk-on with Nasdaq leading the increase
- The Dow Jones Industrial Average rose 237.44 points, or 0.89%, to 27,024.80.
- The S&P 500 index climbed 29.53 points, or 1.0%, to 2,995.68.
- Nasdaq Composite Index was a winner with 100.06 points’ gain, or 1.24%, to 8,148.71.
Not only receding pessimism surrounding the US-China trade deal but increasing odds of a Brexit deal also propelled Wall Street at the end of Tuesday’s trading session.
Following trade-positive comments from the Chinese Foreign Ministry, global financial markets overcame earlier doubts concerning the much-awaited deal. The dragon nation said that both countries are “on the same page and have no difference in the stance on reaching a trade deal.”
On the other hand, The United Kingdom’s (UK) Prime Minister (PM) Boris Johnson is trying to win over the European Union (EU) and has been successful so far, despite the fact that the deal needs to pass through the Parliament.
Further boosting the investor sentiment are comments from the St. Louis Federal Reserve Bank president James Bullard and President and Chief Executive Officer of the Federal Reserve Bank of San Francisco Mary C. Daly. Both of them turned down the scope of further negative rate policy while praising the US fundamentals.
For the days to come, the US Retail Sales and Fedspeak can keep entertaining global traders while developments surrounding the key catalysts, namely trade and Brexit, will be on the driver’s seat.
DJIA Levels
Despite gaining a grip over 27,000 round-figure, the equity gauge needs to cross July highs over 27,400, also surpass 27,500 psychological mark, in order to firm up the bulls’ grip. However, bears likely to stay away unless 200-day Simple Moving Average (SMA), near 26,000, breaks.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
