US Not in a Trade War with China, Market Knows It, Surges
$DIA, $SPY, $QQQ, $VXX
Wednesday, US President Donald Trump said that the United States was not in a trade war with China, after Beijing slapped tariffs on a list of US imports in retaliation for similar duties levied by the White House 1 day earlier.
“We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the US,” President Trump wrote in a post on Twitter.
He went on to say “we cannot let this continue.” and the DJIA reversed a 500 point fall and finished up 230.94 points on the day at 24,264.30.
The market is backing President Trump as are the majority of America’s voters.
The reversal came mid-morning when NEC Director Larry Kudlow told reporters that there is a chance that the China tariffs do not go into effect, emphasizing that President Trump wants to solve the China trade issue with the least amount of pain possible.
No tariffs have been put in place by either country.
Stocks began trimming losses shortly after the opening bell, eventually triggering some short-covering activity that further accelerated the upward action.
The major averages finished near their highs on the day.
10 of 11 S&P sectors closed Wednesday’s session in positive territory, with 7 adding more than 1.0%.
The consumer discretionary sector (+1.8%) was the best-performing group, with just about all of its components finishing in the Green
Wednesday, the major US stock market indexes finished at: DJIA +230.94 at 24264.30, NAS Comp +100.83 at 7042.11, S&P 500 +30.24 at 2644.69
Volume: Trade on the NYSE came in at 855-M/shares exchanged
- NAS Comp +2.0% YTD
- S&P 500 -1.1% YTD
- DJIA -1.8% YTD
- Russell 2000 -0.3% YTD
HeffX-LTN’s Market Indexes Technical Analysis