Stocks made a decent recovery on Wednesday thanks to the renewal of hopes for making some progress on trade along with a recovery in the technology section, which is quite volatile. The Dow Jones Industrial Average had a gain of 0.71 per cent or 175.30 points to be at the level of 24, 924.03. On the other hand, both the S&P 500 and the Nasdaq Composite were higher by 0.4%. This happened after the Director of National Economic Council; Larry Kudlow managed to sound more optimistic regarding the G20 Summit than what the White House did earlier.
The hopes of the markets are pinned on the G20 summit and the meetings due to take place between President Xi and Donald Trump on the sidelines. The meeting is seen as the final opportunity for this year 2018 to move forward the talks regarding trade. Along with this, making a move on tariffs might turn out to be one of the final big catalysts for the stock market this year. This is especially when the reporting season for the third-quarter is behind everyone. Though the results were quite impressive, still the markets are lagging behind by 5% since the results were declared. This has primarily happened because of slow repurchases of shares, managements’ cautious approaches towards making comments and the possibility of slow growth while moving forward.
Now, all the focus will on the Chief of Federal Reserve, Jerome Powell. He is set to give a speech in New York at 12 pm, which is not much time after a new round of criticism coming from the White House. Powell may not come up with anything significant in his speech, still, the investors will be keeping a close watch to see if he shares the same sentiments similar to that of Fed Vice Chairman Richard Clarida. Investors will be interested to listen, what kind of observations he goes on to make regarding inflation. He has not touched on this topic since the prices of crude oil were down over the last one month. Weaker crude oil environment could result in less pressure on prices, hence leading to less pressure on the Fed to raise interest rates.
William has an experience of more than seven years writing for the web. In the recent couple of years, he’s been focusing on the business sector, watching market trends and the growth of economies. At News IMN, we use his services to keep our readers updated about the market that decides their lives.