You are here: Home » News-CM » International » Market Report
Business Standard

US Market rises on renewed trade deal optimism

Capital Market 

The US stock market finished higher for the first time in three sessions on Wednesday, 09 October 2019, as risk sentiments boosted up on hopes of progress in US-China trade talks after reports that China was open to a partial trade deal. However, market gains were capped after Beijing has lowered expectations for significant progress from this week's trade talks due to the US Commerce Department's blacklisting of 28 Chinese companies. At closing bell, the Dow Jones Industrial Average rose 182.1 points, or 0.7%, to 26,346.14, the S&P 500 gained 26.3 points, or 0.9%, to 2919.4 and the Nasdaq Composite added 79.96 points, or 1%, to 7903.74.

All 11 major sectors of the S&P 500 closed higher, with technology and energy sectors being notable gainers in the percentage term.

Investor sentiment got an early boost after reports that China remained open to agreeing to a partial trade deal with the United States and offering to increase its annual purchases of US agricultural products.

However, market gains were capped after Beijing has lowered expectations for significant progress from this week's trade talks due to the US Commerce Department's blacklisting of 28 Chinese companies.

Market participants remained focused on the resumption of trade talks in Washington D. C. between the U. S. and China with import tariffs set for $250 billion worth of Chinese goods at a rate of 30% from Oct. 15. The world's two largest economies have imposed tariffs on billions of dollars' worth of one another's goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

Minutes from the US Federal Reserve's 17-18 September 2019 meeting released on Wednesday, showed that most policymakers supported last month's interest rate cut, and while all were generally more concerned with risks associated with the US-China trade war and slowing global growth among other geopolitical issues, they differed on what that meant for the US economy. The meeting notes showed the central bank is split over the proper trajectory of monetary policy, with several members believing that the Fed should not have cut rates in September, while others have argued for an even more aggressive stance. Following a series of disappointing manufacturing and service sector survey data on the U.

S. economy last week, market expectations for a third-consecutive rate cut at the Oct. 30-31 meeting has risen.

On the data front, the number of job openings was little changed at 7.1 million on the last business day of August, the U. S. Department of Labor reported on Wednesday. The job openings rate was 4.4%. The number of job openings was little changed for total private and for government. The number of hires edged down to 5.8 million in August. The hires rate was 3.8%. The number of hires edged down for total private and was little changed for government.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 10 2019. 07:59 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU