Wall Street opens with strong gains boosted by renewed trade optimism
- China voices willingness to continue with trade negotiations on Thursday.
- US Pres. Trump announces there are trade talks scheduled for today.
- Risk-sensitive technology shares rise sharply on risk-on flows.
Major equity indexes in the US started the day sharply higher as the latest headlines surrounding the US-China trade dispute revived hopes of the conflict coming to an end before escalating further and provided a boost to risk-sensitive stocks. As of writing, the Dow Jones Industrial Average and the S&P 500 were both up 1.2% on the day while the Nasdaq Composite was rising 1.7%.
Earlier today, Gao Feng, spokesman for China's commerce ministry, said that they were hoping that the US would cancel the additional tariffs that are scheduled to go into effect on September 1 and voiced their willingness to continue the negotiations in Washington. Additionally, during an interview with Fox News Radio, US President Trump said that they were scheduled to have talks with China on trade "at a different level" on Thursday.
Among the 11-major S&P 500 sectors, the risk-sensitive Technology Index is up 1.75% on the day to lead the rally ahead of the Energy Index, which is adding 1.55%. Even the defensive Utilities, and Real Estate indexes are in the positive 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.
