Market Reacts to Trump-Xi Meeting Delay

Market Reacts to Trump-Xi Meeting Delay

$DIA. $SPY, $QQQ, $RUTX, $VXX

Wall Street stocks declined Thursday on concerns that the United States and China would not be able to reach a trade deal, thus increasing concerns about slowing global economic growth.

President Trump said he did not plan to meet with Chinese President Xi before the 1 March deadline set by the 2 countries for reaching an agreement.

The DJIA declined about 400 points after White House adviser Larry Kudlow said there was a pretty sizable distance to go in the trade talks. The next round of discussions will take place in Beijing next week.

Mr. Kudlow’s comments, made in a TV interview, added to worries over a global slowdown which was rekindled after the EU cut its economic growth forecasts. 

Stocks pared losses into the close of the session.

The benchmark S&P 500 Index hit a Key technical support mark at 2,700, that triggered buying.

Among the S&P 500’s major sectors the defensive utilities and real estate indexes finished in the Green, illustrating Thursday’s risk-off sentiment.

The Philadelphia SE Semiconductor Index fell 2.2%. Chipmakers get a large bit of their revenue from Chinese customers.

Thursday, the major US stock market indexes came in at:DJIA -220.77 at 25169.53, NAS Comp -86.93 at 7288.36, S&P 500 -25.56 at 2706.01

Volume: Trade on the NYSE came in at 948-M/shares exchanged

  • Russell 2000 +11.7% YTD
  • NAS Comp +9.8% YTD
  • S&P 500 +8.0% YTD
  • DJIA +7.9% YTD

HeffX-LTN’s overall technical outlook for the major US stocks market indexes is Bullish in here.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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