Wall Street opens higher fueled by trade optimism

US Treasury Secretary Mnuchin says 90% of trade deal is completed.
President Trump says it's possible to reach a deal at G20.
Technology and energy shares lead the rally on Wednesday.

Eren Sengezer FXStreet

As signalled by the rising stock futures, major equity indexes in the United States started the day in the positive territory boosted by stronger risk-appetite amid renewed trade optimism. As of writing, the Dow Jones Industrial Average was up 0.2% on the day while the S&P 500 and the Nasdaq Composite were adding 0.3% and 1.1% on a daily basis.

Earlier today, U.S. Treasury Secretary Mnuchin said that the trade deal with China was 90% completed and later President Trump told Fox Business that it was possible to reach a deal at the G20 when he meets his Chinese counterpart President Xi. The CBOE Volatility Index, Wall Street's fear gauge, was last down nearly 4% on the day to reflect the positive impact of these remarks on the market sentiment.

Among the 11 major S&P 500 sectors, the risk-sensitive Technology Index is leading the rally with a daily gain of 1.7% ahead of the Energy Index, which was last up 1.3% on the back of rising crude oil prices. On the other hand, the defensive Utilities, Real Estate, and Consumer Staples are all in the negative territory in the early trade.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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