Wall Street rises on renewed trade optimism
- US Pres. Trump says they are very close to a big deal with China.
- Rising crude oil prices boost energy shares in early trade.
- Defensive sectors struggle to gain traction amid upbeat sentiment.
Wall Street's three main indexes started the day in the positive territory after US President Trump's latest comment on the US-China trade conflict provided a boost to risk sentiment. As of writing, the Dow Jones Industrial Average and the S&P 500 were both up 0.5% on the day while the Nasdaq Composite was adding 0.55%.
"Getting very close to a big deal with China. They want it, and so do we," US President Donald Trump tweeted out just minutes after the opening bell. If sides finalize the phase one deal in the next three days, the US is likely to delay the tariff hike on Chinese imports that is scheduled to go into effect on December 15th.
Among the 11-major S&P 500 sectors, the Energy Index is up 0.9% on the back of a 1% increase in crude oil prices to lead the rally. Additionally, the sharp upsurge seen in the US Treasury bond yields seems to be boosting the Financials Index, which was last seen adding 0.8%.
On the other hand, the defensive sectors, Real Estate and Utilities, are posting modest losses to reflect the upbeat mood.
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.
