Major indexes ended in the green on Wednesday after President Donald Trump said that a U.S.-China trade deal could be in the cards sooner than expected. Investor optimism around a prospective trade deal with China offset concerns over a congressional impeachment inquiry against the president and weaker economic data.
The Dow Jones Industrial Average gained 0.6% to close at 26,970.71 on Sep 25. The broader S&P 500 and Nasdaq Composite took the road north as well, rising 0.6% and 1.1% respectively. The former closed at 2,984.87 and the latter finished the day at 8,077.38. The fear-gauge CBOE Volatility Index (VIX) declined 6.4% to close at 15.96 on Wednesday. Finally, advancers outnumbered decliners on the NYSE by a 1.13-to-1 ratio.
Potential Trade Deal with China Could Happen Sooner
On Sep 25, Trump said that a deal to end the trade dispute with China could take place sooner than expected. He added that China was purchasing agricultural products again from U.S., which comprised of pork and beef as well.
Trump mentioned that China wanted a deal “very badly”. He said, “You know why they want to make a deal? Because they’re losing their jobs, because their supply chain is going to hell and companies are moving out of China and they’re moving to lots of other places, including the United States.”
In the meantime, Chinese State Councilor and Foreign Minister Wang Yi, said in New York that he hoped the next round of high-level trade negotiations would “produce a positive outcome”. The next round of trade talks are scheduled to take place in October in Washington. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
When it comes to economic data, a report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development revealed that sales of new single???family houses in August rose to 713,000 from July’s revised figure of 666,000. This marks a 7.1% gain from the number of new home sales in July.
In August, the median sales price of new houses was $328,400.
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