Ahead of Trump-Xi Meet, Nasdaq, S&P 500 Lead Wall Street Rebound From Mid-Week Dip
The dip that Wall Street witnessed in mid-week trading was quickly bought into on Thursday, despite a mixed batch of corporate earnings and ahead of a much-awaited inflation data report.
The US stock market indices rebounded from a mid-week dip ahead of the highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping.
The Dow Jones rallied nearly 150 points, recovering half of the losses that it saw on Wednesday, while the S&P 500 and Nasdaq rose 0.6% and 0.95% respectively.
Aerospace and industrial automation firm Honeywell Inc. led the surge on Dow Jones after better-than-expected results made the company raise its yearly guidance. Meanwhile, American Airlines posted a narrower than-expected loss and offered a positive guidance that led to a 6% surge in stock price.
On the other hand, tech giants like Broadcom, Amazon and Oracle rallied, alongside recovery in Tesla led to a 2% index gain.
The expectations of a trade pact between two top economies- the US and China are higher as US President Donald Trump is slated to meet Chinese President Xi Jinping on the sidelines of APAC summit in South Korea on October 30.
The meeting assumes significance ahead of the November 1 threat from Trump to impose an additional 100% tariff on Chinese exports and a November 10 deadline of an official truce between the two countries on tariffs.
The consumer price inflation (CPI) data for September is the much-awaited data point of the evening as the Bureau of Labor Statistics will be releasing the numbers later this evening despite the government shutdown.
Economists expect the core CPI for September to rise 0.3% month-on-month and 3.1% year-on-year in September, the same as August. However, a higher-than-Fed-target CPI will not prevent the US Federal Reserve from cutting interest rates next week as the central bank is likely to lay more emphasis on the weak labor market conditions.
The US Dollar index remains around levels of 99, while Gold prices saw some dip buying after steep losses this week. Brent crude is back near the $66 per barrel mark, after a 5.5% surge overnight.