The Wall Street sign is seen outside the New York Stock Exchange, March 26, 2009. — Reuters pic
FRANKFURT, April 5 — The S&P 500 hovered near six-month highs yesterday, with losses in technology stocks countered by gains in Boeing Co and Facebook Inc, as investors waited for more clarity on the US-China trade talks.
Negotiations continued in Washington after meetings last week in Beijing, as the two countries worked toward resolving their long-standing trade dispute which has cast a shadow over global economic growth.
President Donald Trump met Vice Premier Liu He, who is leading the Chinese side in the talks, later yesterday.
“The market is taking a breather today. It’s in a kind of wait-and-see period after a week of strong rally,” said Paul Brigandi, head of trading at Direxion Funds in New York.
“We’re awaiting some more details on the US-China negotiations and we’re awaiting the jobs report. That’s giving people reason to wait and see what the next steps are.”
Investors will get a clearer picture of the strength in the labour market today, when the non-farm payrolls report is expected.
Hopes of a trade deal have driven the S&P 500 to a strong start since the beginning of the quarter and it has closed higher all of this week. The index is near its highest since Oct. 10 and 2per cent away from hitting an all-time high.
Dampening the mood further were worries of a global economic slowdown as data earlier in the day showed German industrial orders in February fell at their sharpest rate in more than two years.
The numbers from Europe’s biggest economy follows disappointing US services sector activity and private payrolls data on Wednesday.
At 1:04pm ET the Dow Jones Industrial Average was up 88.85 points, or 0.34per cent, at 26,306.98,