U.S. stocks headed higher Wednesday midday following a report that a phase-one trade U.S.-China trade deal was still in the works, helping to offset fears of a delay sparked a day earlier by President Donald Trump’s remarks.
What are stocks doing?
The Dow Jones Industrial Average DJIA, +0.71% rose 190 points, 0.7%, to 27,694. The S&P 500 index SPX, +0.72% was 21 points higher, or 0.7%, trading at 3,114. The Nasdaq Composite Index COMP, +0.59% jumped 48 points, or 0.6%, at 8,568. All three indexes were off earlier highs.
On Tuesday, the Dow ended 280.23 points lower, down 1%, at 27,502.81, for its biggest one-day drop since Oct. 8. The S&P 500 finished with a loss of 20.67 points, or 0.7%, at 3,093.20, while the Nasdaq retreated 47.34 points, or 0.6%, ending at 8,520.64.
What’s driving the market?
U.S. stock-index benchmarks recovered some of the week’s lost ground after Bloomberg News, citing sources familiar, reported that despite signs of fresh tensions, Beijing and Washington were making progress toward a phase-one trade pact. The comments also helped to provide a lift to European equities.
Bloomberg’s report said any partial resolution on trade would be complete before another set of China tariffs kick in on Dec. 15. The news comes after stocks broadly slumped on Tuesday following a President Trump news conference in London, where he indicated there was “no deadline” when it comes to concluding the nearly two-year-old U.S.-China trade spat. He made those comments at a NATO meeting.
“It still baffles me that investors hang on every Trump statement and tweet,” said Craig Erlam, an analyst with OANDA Europe. “His trade deal optimism changes on a near-daily basis and yet investors are very sensitive to it. It is probably a reflection of the relative lack of other talking points.”