Dow Jones up 32 points as US-China trade talks stall
The US stock market modestly increases even though US-China trade talk optimism fades.
The Dow Jones rose despite investors' concerns about a lack of a definite US-China trade resolution. Even though the US and China halted additional tariffs, there is still uncertainty about future trade talks between the nations.
US stock market high despite trade tensions
White House trade advisor, Peter Navarro, said that negotiations between China and the US will take time and there is no set deadline for the trade talks.
‘This is a very complicated process. This will take time, and we want to get it right,’ said Navarro.
Peter Kenny, president of Kenny’s Commentary LLC and Strategic Board Solutions, said that the Dow Jones surged after expecting a US-China trade pact and is settling down because there is no definite resolution in the near future.
‘There really was this expectation on the inside of the [Wall] Street that [US President Donald] Trump would deliver on something that gave a lift to confidence and lift to the prospects for international trade -that is really what fueled the move,’ said Kenny.
‘Now that is done, now that is in the rearview mirror, what is next?’, asked Kenny.
Investors are also concerned about the US possibly imposing extra tariffs on EU goods. The US is proposing additional tariffs on $4 billion worth of EU products as part of a dispute between Boeing and Airbus.
What’s next for the Dow Jones?
Art Hogan, chief market strategist at investment firm National Securities, said that investors will eagerly wait for many pivotal events in the coming weeks that could impact the Dow Jones, including the next US Federal Reserve meeting and corporations' earnings season.
‘We’ve got a wait and see on the trade deal, a wait and see on the Fed, a wait and see on earnings and all of that is in front of us by at least two weeks,’ said Hogan.
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