Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Stocks - Dow Notches Two-Month Winning Streak as Trump Stops Short on China

Published 05/29/2020, 03:21 PM
Updated 05/29/2020, 04:05 PM
© Reuters.

© Reuters.

By Yasin Ebrahim 

Investing.com – The Dow cut its losses on Friday, capping off its second-straight month of gains as President Donald Trump said the U.S. would end Hong Kong's special treatment but stopped short of imposing new sanctions on China, keeping the U.S.-Sino trade truce intact. 

The Dow Jones Industrial Average ended flat, the S&P 500 rose 0.48%, while the Nasdaq Composite was up 1.29%.

In retaliation for China's move to impose a new national security law on Hong Kong that cracks down on public demonstrations, Trump said the U.S. would take measures to revoke Hong Kong’s special trade status with the United States that grants it favorable terms across trade, financial transactions and immigration. 

Under the new law, Beijing has violated its pledge to ensure Hong Kong retains its high degree of autonomy that has allowed the city to receive special status from the U.S., Trump said.

The reaction in the market was one of relief as investor fears were high heading into the press conference amid reports Trump was considering tougher measures, including sanctions on Beijing.

Trump also continued to blame China for the coronavirus pandemic, the impact of which continues to drag on U.S. economic growth.   

The consumer, the backbone of the economy, reined in spending like never before in April, as shuttered businesses limited consumer opportunities to spend.

Consumer spending fell 13.6% to in April, the steepest since records began, the Commerce Department reported Friday. But some are optimistic the reopening of the economy will trigger a rebound in the coming months as personal savings surged by a record 33%.

"The savings cushion will provide much-needed support for consumer spending as the economy begins to reopen," Jefferies (NYSE:JEF) said in a note.

Monetary policy was also in focus as Federal Reserve Jerome Powell confirmed that the central bank is just days away from rolling out its Main Street lending facility. Powell also reiterated the negative interest rates are not in the Fed's toolbox as the evidence over its efficacy remains “ambiguous".

In tech, meanwhile, Twitter (NYSE:TWTR) remained in focus, down 2.8% after Trump signed an executive order late Thursday that aimed to weaker the legal protections for social media platforms.

Healthcare stocks were in favor as investors continue to up bets on drugmakers in the race of the coronavirus cure, with Moderna (NASDAQ:MRNA) up 10.7% and Gilead Sciences (NASDAQ:GILD) up 3.3%. 

Latest comments

Re: Supporters of Communist China Regime. 1. Donald Trump will likely get re-elected. 2. China is suppressing freedom and free speech. 3. China has a bad record of putting the people first above the regime and communist ideologies. Sorry Charlie, but I think it's for the best !!!! Oh well !!!! 😁
Flip flop and kiss some China A.
Tough on the little guys and kisses Dictator A...
👽
Melaniaaaa <3
5 months to President Elect Joe Biden
🤣
And the market crash to depression with highest tax we will ever see.
Trump loves China. He will win the election because he takes care of the market.
I see Dr Donny is having a new, reinforced wall built around the WH. Is Mexico paying for that one too?
US Corporates and their ppl know, even if they fail umpteen times, FED will bail them out that's why this casual approach towards money forever. High time, some rating agency shows some ********and downgrades the sovereign debt and challenge the printing ability of the US
It takes lots of courage to take on countries like China and their unethical border and trade practises but US not it's Prez have the guts to act against them. Simply tweeting China and doing nothing shows, he just wanted to set up his own stuff.. make more while it lasts as he knows deep down, he can't be back in office again
Good job, Mr President... a really smart move. Now the bulls can continue to fly
Interesting how Trumpters think market numbers are now more important than winning the trade war with China.
Bla bla bla.He doesnt have ***
What could he say? If he had said a serious word against China, DOW would dig the floor. China can easily destroy US economy now
Don the Con backed himself into a corner, again.
Trump is just protecting his personal interests over America interests and thereby losing hold of America's position as global leader
Expecting market being higher at least by June 19th (Triple witching day). First Trump need the market up regardless. If he can kiss Putin and Kim III, he can do anything as long as it lines with his own interest. Second, FED and institutes need the market up to take profit and unload to retail investors. But also be aware that it is getting very expensive for institute to push up market and lure retail investors in at this market level. So the thin volume tricks will still be the main strategy for institute in the remaining days.
what
And socialized market going up and up...
This isn't nothing, now HK will be treated as part of mainland China and all of China's existing sanctions will now attach to Hong Kong. But Im wondering if the move will help or hurt HK citizens.
It only hurts when they get tortured for public discourse.
hurt them, obviously. its not like the politicians or their supporters care in the slightest about rights or welfare of HKers. all they want is to appear 'tough on china' and win approval. since HKers are to some extent chinese, to h with them who the f cares
 Yes I agree, humans who are alive have an interest in human rights. So yes, it is self-serving. Remember it is only a short while ago that China attacked its own citizens with tanks, a clear example of how "stability" and "harmony" is prized above human life.
All Talk!
Trump's broker called and gave him the heads up that he was long on the day.
Drumpf blinked.
de ce nu se traduce si an română.
Deoarece nu toți cunoaștem engleza.
#Trump2020
Turn those machines back on! Buy Buy Buy!!!
Well said, that's what been programmed to do all over Indices! Robotic biddings!!! end of the day, all those transactions filtered out and scrapped, only resulting in price manipulation. Upward bullish moves! Its not US mkts alone, but Globally its been done. India Stock Markets are no. 1 Algo trading platforms.
I don't see how the market took this as positive news, it was neutral at best, if not slightly negative, but I can't rationalize this market either way so what do I know.
Investing's ministry of propaganda always has to find a sliver of hope in every dark cloud to explain away the Fed's market manipulation.
It was neutral.  It just regained what it lost Thursday when the press conference was announced.
I don't see how this was positive news, at best it would be neutral.
Very disapponiting.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.