- China headlines mixed with positive news in the US Senate to lift the Dow Jones off its lows on Thursday afternoon.
- Impeachment odds remained steady as witnesses added no new bombshells for the Dow to endure.
- Economist Nouriel Roubini believes the stock market outlook is worsening because investors appear increasingly out of touch with economic realities.
The Dow Jones roared back from its session lows on Thursday afternoon, as contradictory trade war headlines left the stock market volatile.
However, noted economist Nouriel Roubini warns that the stock market has diverged wildly from the economy’s underlying fundamentals.
Dow Jones Rallies as Bulls Buy the Dip
All three of the major US stock market indices traded in the red ahead of Thursday’s close, but losses were muted compared to earlier in the session.
The Dow Jones Industrial Average dipped 17.22 points or 0.06%. The index last traded at 27,803.87 after sliding as low as 27,708.34 this morning.
The Nasdaq led the declines with a 0.13% loss, while the S&P 500 was down around 0.07%.
A rally in the USD crushed the price of gold by 0.7%. The price of oil was unaffected, and crude jumped another 2.6%.
What’s Moving the Stock Market Today
Helping to erase the early losses in the Dow Jones, news broke that the Senate had the votes to avoid a costly government shutdown. This is good news for investors, who have already witnessed first-hand the damage that a closed government can do to markets.
Skyrocketing impeachment odds receded slightly, even as renowned Russia-hawk, Dr. Fiona Hill, delivered a powerhouse performance in Congress. Nothing as important as Sondland’s “quid quo pro” comments emerged, limiting the effect on the Dow.
Mixed signals are the name of the game on the trade war front. Both the United States and China are trying to ensure that they can achieve a…