Wall Street rallies on US-China trade talks
The US stock market recovers after the US and China try to end their trade stalemate.
Wall Street has rebounded on the strength of the renewed trade talks between the US and China. The US stock market rose and increased by almost 100 points.
How China and the Fed affect US markets
The US and China are attempting to resolve a trade stalemate that the two countries reached in 2018. US Secretary of State, Mike Pompeo, and Chinese Vice Premier, Liu He, are meeting to end the tariffs that have hurt China’s economy and impacted the stock of American companies caught in the middle like Apple. The trade talks are renewing optimism that the gridlock can resolved and both nations can de-escalate the trade war between the two nations and end the punitive duties on imported goods.
The US markets are also benefiting from strong employment numbers from December 2018 and dovish comments from US Federal Reserve Chair, Jerome Powell. He noted last week that he would pay attention to Wall Street’s movements more before raising interest rates.
What’s next for US stock market
Even though the US stock market is rallying at the start of 2019, Bruce Bittles, chief investment strategist at Baird, is sceptical about the uptick in US stocks.
‘It would be premature to consider that the volatility in the stock market will disappear and that a sustained new uptrend has begun. Additionally, uncertainty lingers over trade talks with China as does the impact of the slowdown in global growth on the domestic economy,' noted Bittles.
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