Stock market have been on a losing streak with the S&P 500 reporting losses for five consecutive days before Thursday trading. New confidence and optimism surrounding trade has put an end to the slide, with the three most important indexes posting moderate gains at the bell on Thursday evening.
What Sent the Stock Market Up on Thursday?
As has been the theme throughout most of this year, trade news was highly influential.
With a breakdown in trade relationships, followed by tit-for-tat tariffs, trade woes have been a dark cloud over the Stock market. U.S. tariffs on China have eroded the profits of some American companies, particularly tech manufacturers. Chinese tariffs have also harmed U.S. exporters, with the agricultural sector taking the brunt of the impact.
It has now been announced that both governments are back at the table, engaging in trade talks to find a middle ground on disputes. President Trump was optimistic earlier this month, telling his followers on Twitter that he had “Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade.”
Chinese Commerce Ministry spokesman Gao Feng said in a statement yesterday that “high level bilateral contacts on trade and economic issues were resumed. The working groups of the two countries are currently maintaining close contacts in order to implement the agreements reached by the leaders in the telephone conversation.”
Feng was apparently referring to the earlier conversation between Trump and Jinping, although no details have been made public at this time.
A statement from Federal Reserve Chairman Jerome Powell has also triggered renewed investor confidence. He said earlier this week that he was “very happy about the state of the economy.” The Fed still plans to implement another rate hike in December.
Tracking the Three Main Benchmarks
Every major index trended upwards on Thursday.
- The Dow Jones was up 0.83% yesterday and 7.80% for the last 12 months.
- The NASDAQ Composite was up 1.72%, and 6.86% for the last 12 months.
- The S&P 500 was up 1.06%, and 5.59% for the last 12 months.
A single day of positive news does not make a trend in thet Stock market, but it will still provide investors with more confidence moving into Friday trading. Ending a five-day losing streak is significant news in what has been a highly volatile final quarter.
You may be interested
Job Hiring is Picking Up as Employers and Consumers Gain ConfidenceLamont J - March 29, 2021
The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…
Fed Could Maintain 0% Interest Rate Until 2024Adam R - March 26, 2021
The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…