U.S. stocks on Wednesday looked likely to add to the prior session’s rebound as a number of global central banks adopted easy-money policies in the face of an intensifying trade conflict between Beijing and Washington.
How did benchmarks perform?
Futures for the Dow Jones Industrial Average YMU19, +0.03% rose 105 points, or 0.4%, at 26,030, those for the S&P 500 index ESU19, +0.05% added 12 points, or 0.4%, to 2,887.75, while Nasdaq-100 futures NQU19, +0.20% advanced 50.25 points to reach 7,566, a gain of 0.7%.
On Tuesday, the Dow DJIA, +1.21% rose 311.78 points, or 1.2%, to end at 26,029.52, while the S&P 500 index SPX, +1.30% climbed 37.03 points, or 1.3%, to close at 2.881.77, powered by a rally by the information technology XLK, +1.66% and communication services XLC, +1.45% sectors, while the Nasdaq Composite Index COMP, +1.39% surged 107.23 points, or 1.4%, to finish at 7,833.27.
What’s driving the market?
For a second day in a row, the People’s Bank of China set the official midpoint reference for yuan at 6.9996 in Asian hours, but the level approaches the key level of 7, widely viewed as a line in the sand for the currency. The PBOC fixes the currency daily and allows it to move up to 2 percentage points on either side of its midpoint.
A breach of that level on Monday, interpreted by some as an intentional weakening of its currency, helped to ignite a global stock market selloff and slump in bond yields, but markets have so far stabilized, despite the prospect of an uncertain timeline for a Sino-American trade resolution.
Adding to market jitters is growing fears of a recession in the U.S. against a weaken economic backdrop throughout the globe.
Central bank’s in India and New Zealand lowered their domestic interest rates to