- The S&P 500 index put on 26.34 points to finish at 2,919.40, up 0.9%.
- The Dow Jones Industrial Average added 181.97 points, or 0.7%, to end at 26,346.01.
- The Nasdaq Composite climbed by 79.96 points, or 1%, to close at 7,903.74.
The Dow Jones Industrial Average, DJIA, climbed on Wednesday following early reports of a possible partial trade deal between China and the US this week. The index added 181.97 points, or 0.7%, to end at 26,346.01. The S&P 500 index put on 26.34 points to finish at 2,919.40, up 0.9%, while the Nasdaq Composite climbed by 79.96 points, or 1%, to close at 7,903.74.
Conflicting trade talk headlines
A report from Bloomberg News explained that China was open to a limited tariff resolution with the U.S.. The Financial Times indicated that China has offered to increase by 50% purchases of agricultural products from U.S. farmers. However, a late statement from China poured cold water over such optimism and said that the US had damaged any goodwill following the blacklisting of Chinese companies by the US State Department the prior day, announcing that Beijing has little hopes of a trade deal breakthrough this week.
Analysts at NAZ Bank explained that tensions between US and China appear to have eased a tad ahead of the trade talks set to resume tomorrow. "More tariffs are set to be added on October 15 and on December 1 so these may be delayed or dropped. However, no concessions are expected to be made on the tougher issues such as a reform of China’s state-led economic model."
DJIA levels
The DJIA is suppressed below trendline resistance and remains a positive session away from the 21 and 50-DMAs converging in the mid 26000s. Bears will otherwise be en-route for a test of the psychological 26000 level again. A break to the upside and through the mentioned DMA accumulating around the mid-point of the 26000s in line with the Sep lows-resistance line in the mid-26000's will open prospects back to the Sep highs through 27200.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.