On Wednesday, U.S. stocks advanced 1.6% on signs that trade tensions would ease. Following President Trump’s upbeat remarks that talks were underway with Beijing who is buying a tremendous amount of soybeans from the U.S., This is the first sizeable purchase since the imposed tariffs and a temporary trade truce earlier in the month.
As part of the deal with China, President Trump in an effort to calm the situation suggested that he was willing to use his influence to secure a trade deal following the arrest of top Huawei executive, who was granted bail.
President of Plumb Funds in Madison Wisconsin, Tom Plumb said that the positive news on the China and U.S. trade talks has driven sentiment which for the next three months will be the number 1 headline.
Focus on Brexit
The forefront focus of investors has been the developments of Brexit, as speculation on whether British Prime Minister, Theresa May would survive the vote of no confidence. The pound sterling jumped 1.1 percent, the most for the month, to $1.2624.
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Investors are also focusing on the developments of funding for the border wall with Mexico. With President Trump threatening a government shutdown as the Democrats leaders in Congress stonewall him.
Data showing key measure U.S. inflation picking up in November saw both the Treasuries and the dollar slipping.
The biggest support to the market was the S&P technology sector with gains of 2.21 percent.
Industrials gained 1.89 percent on the back od Caterpillar Inc. and Boeing Co.
Plumb said that those investors who bought into the stock market in the fall have significant losses and will most likely put selling pressure for year-end positioning.
Topics on Britain’s Brexit from the EU and a possible U.S. shutdown has seen chopping trading in the past two days.
The Dow Jones Industrial Average gained 1.68 percent or 410.12 points.
The S&P 500 gained 44.60 points, or 1.69 percent at 2,681.38 with 14 new 52-week highs and five new lows.
The Nasdaq Composite gained 2.20 percent or 154.87 points at 7,186.70, recording 18 new highs and 117 new lows.
There were 3.63- to- 1 -ratio on the NYSE of advancing issues outnumbering decliners