Dow set for nearly 200-point gain as inflation report points to highest yearly rate in 6 years

U.S. stocks looked poised to rebound early Thursday, resuming a recent uptrend that had been interrupted on Wednesday by a fresh intensification of trade and political disputes between Washington and the rest of the developed world. However, upbeat data and signs that the U.S. and China, the two biggest economies in the world, are open to resolving their differences has helped to refresh some appetite for assets perceived as risky.

What are markets doing?

Futures for the Dow Jones Industrial Average YMU8, +0.81%  rose 196 points, or 0.8%, to 24,884, while those for the S&P 500 index ESU8, +0.60%  gained 15.90 points, or 0.6%, to 2,790. Futures for the Nasdaq-100 index NQU8, +0.61%  rose 43.50, 0.6%, to 7,297.25.

The premarket gains come after a selloff on Wednesday, when U.S. stocks snapped a four-session winning streak as the Trump administration announced plans to impose another round of tariffs on Chinese goods. The Dow DJIA, -0.88% ended 0.9% lower, while the S&P SPX, -0.71%  fell 0.7% and the Nasdaq Composite Index COMP, -0.55%  shed 0.6%.

What is driving the market?

The trading mood on Thursday morning may have been getting a boost from signs the U.S. and China are willing to resume trade talks, which could end up in a bilateral agreement. Bloomberg reported late Wednesday that officials from both countries have raised the prospects of restarting a conversation at a high level.

Fears of a full-blown trade war possibly developing between the world’s two largest economies have weighed on equities around the globe in recent months, although analysts have pointed out that markets have remained somewhat resilient.

Meanwhile, the U.S. consumer-price index increased 0.1% in June. Core CPI, minus volatile food and energy, rose 0.2% on the month. Moreover, the 12-month gain for CPI rose to a 6-yr high of 2.9%,

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