logo
Plus   Neg
Share
Email

U.S. Stocks Show Strong Move Back To The Upside

wallstreet-aug29_04sep19-lt.jpg

Stocks showed a strong move to the upside at the start of trading on Wednesday, rebounding following the sharp pullback seen in the previous session. The major averages have given back some ground since then but remain firmly in positive territory.

Currently, the major averages are holding on to notable gains. The Dow is up 174.42 points or 0.7 percent at 26,292.44, the Nasdaq is up 65.28 points or 0.8 percent at 7,939.44 and the S&P 500 is up 19.96 points or 0.7 percent at 2,926.23.

The initial strength on Wall Street reflected a positive reaction to developments overseas, including news that Hong Kong leader Carrie Lam has withdrawn a controversial extradition bill.

The bill, which would have allowed people in Hong Kong to be extradited to mainland China, sparked widespread protests across Hong Kong.

Positive sentiment was also generated in reaction to a report showing growth in China's service sector accelerated in August despite broader economic headwinds.

Back in the U.S., the Commerce Department released a report showing the U.S. trade deficit narrowed in the month of July amid an increase in exports and a modest decrease in imports.

The Commerce Department said the trade deficit narrowed to $54.0 billion in July from a revised $55.5 billion in June.

Economists had expected the deficit to narrow to $53.5 billion from the $55.2 billion originally reported for the previous month.

The narrower trade deficit came as the value of exports climbed by 0.6 percent to $207.4 billion, while the value of imports edged down by 0.1 percent to $261.4 billion.

Later in the trading day, the Federal Reserve is scheduled to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts.

The Beige Book, which is typically released two weeks before the Fed's next monetary policy meeting, may shed additional light on the outlook for interest rates.

After turning in some of the worst performances in the previous session, steel stocks have shown a strong move back to the upside.

Reflecting the strength in the sector, the NYSE Arca Steel Index has surged up by 2.6 percent after tumbling by 2.6 percent on Tuesday.

Semiconductor stocks have also shown a significant rebound, driving the Philadelphia Semiconductor Index up by 2.2 percent.

Computer hardware and energy stocks are also seeing notable strength in morning trading, moving higher along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Wednesday, with Hong Kong stocks leading the way higher. Hong Kong's Hang Seng Index spiked by 3.9 percent, while China's Shanghai Composite Index advanced by 0.9 percent.

The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has risen by 0.4 percent, the German DAX Index is up by 0.8 percent and the French CAC 40 Index is up by 1.1 percent.

In the bond market, treasuries have climbed off their worst levels but continue to see modest weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.2 basis points at 1.478 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT