Stock Market News: US China Trade Negotiations Resume

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Stock Market News: US China Trade Negotiations Resume

 
  • The Tech sector is up due to improving US-China relations.
  • Beijing request the removal of US duties imposed on Chinese imports

As the highly anticipated trade deal nears completion, Wednesday saw stocks ending on a high note. Dow outperformed both Intel and Home Depot after reaching an increase of 39 points while the S&P 500 increased by about 0.2%. Nasdaq also rose 0.6%.

Both American and Chinese officials were reported to have closed in on a previously formulated trade deal. After the encroachment of trade disputes between the two powers, investors can now see light at the end of the tunnel as the U.S and China are on the verge of a common understanding.

Tech sector rise facilitated by US-China relations

The Chipmakers were adversely affected by the US-China relation which paved the way for the tech sector overtake Chipmakers by a rise of 2.3%.AMD graphics increased after Nomura Instinet launched its coverage of the entire sock with a buying rate thus increasing its profit margin.

“To a certain degree, a trade deal is already priced in,” said Peter Cardillo, chief market economist at Spartan Capital Securities.

Beijing request the removal of US duties imposed on Chinese imports

From a careful review of the Financial Times, the city of Beijing wants Washington to undo the imposed U.S duties on imports that come from China. Trump on the other end wants China to adhere to the agreement which is reflected at ensuring the country does not diverge from the deal.

In the US, growth in different services experienced a decline in March and it later progressively advanced at a slow rate in more than 12 months according to a report from the Institute for Supply Management. The ISM, being a non-manufacturing index recorded a dip of 56.1 in the previous month, one of its softest read from August 2017.

“We know manufacturing has slowed both in the US and globally while the services side has helped to offset this,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.