Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street gets tech boost as reports bolster hopes of trade deal

Stock MarketsOct 09, 2019 12:22PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Arjun Panchadar

(Reuters) - Wall Street rose on Wednesday on the back of gains in technology stocks, as investor sentiment was boosted by reports indicating an ease in trade tensions between the United States and China ahead of pivotal talks on Thursday.

China was still open to agreeing to a partial trade deal with the United States, despite the inclusion of top Chinese artificial intelligence startups in a trade blacklist, according to a Bloomberg report.

Separately, the Financial Times said Beijing was offering to increase its annual purchases of U.S. agricultural products.

Shares in Microsoft Corp (O:MSFT) and Apple Inc (O:AAPL) rose about 1% and were among the biggest boosts to the S&P 500 (SPX). The technology sector (SPLRCT) rose 1.08%.

Chipmakers with a sizable exposure to China also gained, with the Philadelphia SE Semiconductor index (SOX) up 1.45%.

"The reality of what we can actually expect from these talks is for both sides to come to a truce. If they just called a time-out, a detente, then the markets would celebrate that," said Art Hogan, chief market strategist at National Securities in New York.

Trade tensions, intensifying efforts to impeach President Donald Trump and signs of slowing economic growth rocked equity markets in October, with the S&P 500 and Dow Jones indexes off more than 2% since the end of September.

Rising geopolitical risks have also not offered investors any respite. Turkish President Tayyip Erdogan on Wednesday said a military operation targeting Kurdish fighters in northeast Syrian had begun.

A sharp contraction in U.S. manufacturing data, as well as a dismal reading on business activity last week has raised bets of a third interest rate cut by the Federal Reserve this year.

Fed Chair Jerome Powell flagged openness to further rate cuts on Tuesday, repeating that the central bank would act "as appropriate" amid an economy that he said was likely to continue to expand.

At 2 p.m. ET on Wednesday, the central bank is due to release minutes from its September meeting.

The session's gains were broad-based, with all the major S&P 500 sectors trading higher and 27 of the 30 components of the blue-chip Dow Jones Industrial Average index (DJI) in positive territory.

Johnson & Johnson's (N:JNJ) shares fell 2.2% after a jury awarded $8 billion in punitive damages to a man who accused it of failing to warn that young men using its antipsychotic drug Risperdal could grow breasts.

Energy stocks (SPNY) also gained 1.3%, tracking an increase in oil prices.

Investors will now turn their eye to the third-quarter earnings season, which begins next week with U.S. banks reporting, to gauge the health of the domestic economy.

Analysts expect the worst quarterly profit performance since 2016, with earnings for S&P 500 companies estimated to fall 3.1% from a year earlier, based on IBES data from Refinitiv.

At 11:25 a.m. ET the Dow Jones Industrial Average (DJI) was up 126.91 points, or 0.49%, at 26,290.95, the S&P 500 (SPX) was up 18.97 points, or 0.66%, at 2,912.03 and the Nasdaq Composite (IXIC) was up 62.32 points, or 0.80%, at 7,886.10.

Shares in Netflix Inc (O:NFLX) fell 1.21%, after two brokerages cut price targets on the video streaming service provider's shares.

Advancing issues outnumbered decliners for a 2.21-to-1 ratio on the NYSE and a 1.71-to-1 ratio on the Nasdaq.

The S&P index recorded seven new 52-week highs and nine new lows, while the Nasdaq recorded four new highs and 76 new lows.

Wall Street gets tech boost as reports bolster hopes of trade deal
 

Related Articles

Tesco's UK sales growth slows in latest quarter
Tesco's UK sales growth slows in latest quarter By Reuters - Jun 18, 2021

By James Davey LONDON (Reuters) -Tesco, Britain's biggest retailer, reported a sharp slowdown in underlying UK sales growth in its first quarter, reflecting a tough comparison...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (9)
Papai Mil
Papai Mil Oct 09, 2019 2:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are working us dry. (Greek idiom)
Dee Mehta
DMFINANCE Oct 09, 2019 11:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bogus rigged market
David David
David9 Oct 09, 2019 8:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I told you guys ... Trump ain't no getting big deal. China will give him small deal first. A deal has to benefit both sides, that has always been what the Lion says. If Trump pokes again at the Lion today, we will continue to hear the China Roar.
Erski Gumby
SB20 Oct 09, 2019 8:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Do you always start your post with “I told you guys?” You sound like a 9 year old.
Michael Angelo
Michael Angelo Oct 09, 2019 8:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Is all a media show. Meanwhile markets are in a trading range and people is entertained with it, consuming advertising.
holy piger
holy piger Oct 09, 2019 7:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol, tensions climbs yesterday and ease today, well played, media
tom roi
tom roi Oct 09, 2019 7:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
very nice
Otb Investor
Otb Investor Oct 09, 2019 7:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China is crumbling. They need the deal badly. Rest is just attemps save face and 'pride'.
Francesco Trader
Francesco Trader Oct 09, 2019 7:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How can you dislike this comment??? China has been very affected by tariffs so far. They definitely need a deal more than the US does
Steven Chen
Gamer_LG Oct 09, 2019 7:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
they are coming with partial proposal, meaning same stuff as last year. if trump agrees to it then it is US who caved. lmao.
Sean Livingstone
Sean Livingstone Oct 09, 2019 7:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Anyone who say that china is desperate for a trade deal and seriously affected by the tariff, has never visited China recently.
Eran Gross
Eran Gross Oct 09, 2019 7:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Every good news are good news. We do not want trade wars
Derek Klardie
Derek Klardie Oct 09, 2019 6:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So China slams the NBA for a comment about Hong Kong. But their fine and happy with the latest blacklisting...
Donald Trump
Donald Trump Oct 09, 2019 6:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hong Kong is more important apparently. Blacklisting is just business, but Hong Kong is politics and soveriegn
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email