Wall Street opens with strong gains as risk sentiment recovers
- CBOE Volatility Index drops nearly 10% on Wednesday.
- US Pres. Trump says they are doing great with China and other trade deals.
- All 11 major sectors of S&P 500 are in green in early trade.
Wall Street's main indexes started the day sharply higher on Wednesday boosted by the risk-on atmosphere. As of writing, the Dow Jones Industrial Average was up 1% on the day while the S&P 500 and the Nasdaq Composite were adding 0.9% and 1.1%, respectively.
Earlier today, China's Foreign Ministry said that it was natural for the US and China to have differences while repeating that it was key to resolve the issues through dialogue. Later in the day, US President Trump said that they were "doing great with China and other trade deals," to help risk-on flows continue to dominate the markets.
Among the 11 major S&P 500 sectors, which are all posting gains in the first hour of the session, the risk-sensitive Technology Index is rising 1.4% to lead the rally. Later in the day, the FOMC will be releasing the minutes of its August meeting.
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.
