Stock Market Stays High with Investors Expecting Positive Outcome on Trade Talks
China and the US have reached some kind of trade agreement after recent violations and the stock market is on the rise.
Quick overview
- The stock market opened on Wednesday with the S&P 500 and Nasdaq Composite showing gains, while the Dow Jones experienced a slight decline.
- Investors are optimistic about trade talks between China and the United States, which have led to a new agreement after previous accusations of violations.
- Key economic reports, including consumer and PPI reports, are set to be released this week, influencing expectations for the Federal Reserve's interest rate decisions.
- Stocks are expected to continue rising unless the upcoming consumer reports indicate worse-than-expected economic conditions.
The stock market opened Wednesday elevated, with the Dow Jones being the only outlier index. The S&P 500 rose 0.06%, and the Nasdaq Composite climbed 0.23%.
The Dow Jones dropped 0.09% as markets opened for trade on Wednesday, with the other major indices opening positive. All three indices closed Tuesday high, indicating a healthy market and hope for trade talks between China and the United States.
Wednesday morning will see the release of the first consumer reports for the week. This report will indicate if inflation is moving at all, directly influencing an upcoming Federal Reserve decision to cut interest rates or not.
What to Watch This Week
Besides Wednesday’s consumer report, there is a PPI report to be released on Thursday. As well, jobless claims will be released the same day, and these will all help investors determine the strength of the economy and what to expect from the stock market for the next few days.
We should see new developments from the trade talks between Chinese President Xi Jinping and United States President Doanld Trump. The two parties have reached an agreement after they both accused the other of violating the previous agreement. As we learn more about what the new agreement is, there may be some effect on the stock market, and we anticipate that it will be a positive one. Investors seem hopeful as well, driving up stock prices overall as the S&P 500 nears its all-time high.
Stocks should continue to climb this week unless the upcoming consumer reports are worse than expected. Investors should prepare for key stocks to do very well in the upcoming days, including Nvidia (NVDA), Microsoft (MSFT), and Apple (AAPL), which have already proven this year that they can shoot up when economic readings are positive.
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