Analysts are of the opinion that investors’ focus on US-China trade talks and positive economic indicators, along with upbeat utterances from the Federal Reserve Chairman, Jerome Powell, are fuelling market performance in the United States.
At close mid-week/pre-Thanksgiving, the Dow Jones Industrial Average DJIA, -0.29% rose 55.21 points, or 0.2% to 28,121.68, while the S&P 500 index SPX, -0.23% rose 6.88 points, or 0.2% to 3,140.52 The Nasdaq Composite Index COMP, -0.30% gained 15.44 points, or 0.2%, to close at 8,647.93.
Abbreviated trade sessions are expected today, after yesterday’s close.
Investors have been watching developments in the long-running US-China trade battle. The latest rally started towards the last half of October when Washington and Beijing indicated the possibility of a partial deal aimed at resolving their differences.
An important deadline is December 15 when new talks are expected.
The positive trend in US equities markets has been also influenced by holiday trends which usually see lighter volumes and lighter news flow as the end of the year approaches.
Additionally, on Monday evening Powell was bullish on the economy, suggesting that low inflation would likely keep interest rates low.
Powell noted that three rate cuts to date in 2019 have assisted in supporting home purchases, and contributed to the economy’s longest expansion on record.
Analysts noted that in the most recent US economic data, the trade deficit fell 6% to $66.5 billion, versus expectations of $70.3 billion.