- DJIA, climbed 382.20 points, or 1.48%, at 26,279.91
- Nasdaq Composite index climbed 152.95 points, or 1.95%, to 8,016.36.
- S&P 500 index added 43.23 points, or 1.5%, to 2,926.32.
On Tuesday, positive US-China trade headlines sent the markets risk-on for a turnaround Tuesday that sent US benchmarks screaming higher on Tuesday. Communications between the US and China seem to be back online with a number of headlines confirming that talks were taking place over the phone and arrangements were being laid out for subsequent continuation meetings in September. Additionally, the Trump administration said it will delay imposing the 10% tariff on some Chinese products until mid-December. Subsequently, the Dow Jones Industrial Average, DJIA, climbed 382.20 points, or 1.48%, at 26,279.91 for the best performance on a single day in two months. The S&P 500 index added 43.23 points, or 1.5%, to 2,926.32. The Nasdaq Composite index climbed 152.95 points, or 1.95%, to 8,016.36.
US data
The US Consumer Price Index was falling in line with market expectations in July at 0.3% m/m, pushing annual inflation up 0.2%pts from June to 1.8%.
Core inflation (ex food and energy) was a touch stronger than expected, also at 0.3% m/m, which saw the annual measure lift to 2.2% from 2.1% in June. While there appears to be some temporary strength in the details (airline fares, tobacco), two consecutive 0.3% m/m rises for core inflation may give some policy makers cause to believe inflation pressures are a touch stronger than previously assumed. Meanwhile, the US July NFIB Small Business Optimism index almost fully retraced last month’s dip on the back of improved expectations about the economy and business conditions. The temporary trade truce and record stock prices are said to have supported, so it will be interesting to see how August’s read holds up,"
analysts at ANZ bank wrote.
DJIA levels
The DJIA index found support on the 200-DMA last Wednesday and yesterday's lows were unbreached with a spike to test the doji's highs (a 50% reversion of the late July swing highs to recent lows) which now brings in the start of August levels back into the picture. The 61.8% retracement level is located at 26646 which meets a key area of resistance dating back to April and May of this year. On the downside, the 20-day and 50-day moving averages are targets in the 26600s.
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
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.