Major US stock indexes rose moderately, as recent media reports have inspired hope for progress in the upcoming high-level trade negotiations between the US and China, which will begin tomorrow.
Bloomberg reported that the Chinese authorities are still ready to enter into a partial trade deal with the United States, despite the inclusion of several leading Chinese companies specializing in artificial intelligence technologies in the blacklist. In exchange, Beijing will offer non-core concessions, such as the purchase of agricultural products, but will not make concessions on major contentious issues between the two countries.
In addition, the Financial Times (FT) reported that China is proposing an increase in annual purchases of US agricultural products to conclude an interim agreement between Beijing and Washington that will prevent a new round of tariff increases scheduled for October 15.
The focus was also on the Fed Chairman's speech at an event in Kansas City. Mr. Powell said the Fed’s strategy and tools were “and remain effective,” and noted that the US economy is in good shape, but it faces a number of risks.
In addition, market participants analyzed data on the level of vacancies and labor turnover (JOLTS report), which showed that in August the number of vacancies decreased by 1.7% mom to 7.051 million from 7.174 million in July (revised from 7.217 million ) Analysts had expected the number of vacancies to rise to 7.191 million. The level of vacancies decreased by 0.1% and amounted to 4.4%. According to the report, the number of vacancies has changed little in both the private and public sectors. As for industries, the number of vacancies has decreased in the non-durable goods manufacturing sector (-49,000) and in the information sector (-47,000).
Some attention of investors also attracted the minutes of the September meeting of the Fed. The document said that Fed leaders expressed concern that a slowdown in global economic growth and growing uncertainty in international trade would begin to negatively affect recruitment rates and the US economy as a whole. The protocol also noted that by the September meeting, the Fed had a clearer picture of the continued weak investment, a decline in the manufacturing sector and exports. "One of the risks threatening the economy is associated with the danger of the weakness of investment, production and export activity of companies on their hiring decisions, which would negatively affect household income and expenses," the protocols said. Recall that during the September meeting, the interest rate was reduced by 0.25%, to the range of 1.75% -2%.
Almost all DOW components recorded an increase (27 out of 30). The leaders of growth were shares of Microsoft Corporation (MSFT; + 1.74%). Outsiders were Johnson & Johnson (JNJ; -2.08%).
All S&P sectors completed trading in positive territory. The largest growth was shown by the technology sector (+ 1.1%).
At the time of closing:
Dow 26,346.28 +182.24 +0.70%
S&P 500 2,919.40 +26.34 +0.91%
Nasdaq 100 7,903.74 +79.96 +1.02%
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