- Dow Jones rises on rejuvenated hopes of a US-China trade deal.
- Traders ignored weak economic data on Wednesday, but Friday’s jobs report will still be a critical risk event for the Dow.
- Despite all signs pointing to the contrary, Wall Street appears to be banking on Trump somehow avoiding having to implement the next wave of import tariffs.
The Dow Jones rallied on Wednesday as White House staffers did their best to discredit Donald Trump’s remarks in London about the state of trade war talks.
Weak ISM and ADP data were shrugged off by the stock market, but this Friday’s job report won’t be so easy for Dow bulls to ignore.
Meanwhile, a fresh wave of tariffs come into effect on December 15th, but bold investors continue to bet on de-escalation in the trade war.
Dow Jones Rallies as White House Does Damage Control
All three of the major US stock market indexes were trading higher on Wednesday afternoon. The Dow Jones Industrial Average rebounded 199.42 points or 0.73% to 27,702.23.
The Nasdaq and S&P 500 assembled similar rallies, bouncing 0.68% and 0.78%, respectively.
It was a cautious day for the gold price, as the haven metal slid 0.34% amid the Dow bounce. A considerably larger than expected draw of almost 5 million barrels from US crude inventories helped send the oil price soaring 4.33%.
Trade War Update Helps the Dow Recover
After two days of trade war turmoil, the stock market was back to drinking the “trade war progress” Kool-Aid. White House sources told Bloomberg that talks were progressing and Donald Trump’s remarks were “off the cuff.”
Dow bulls interpreted this as “ignore the president,” and equity traders are clearly still banking on the December 15th tariffs somehow being avoided at the last minute.
Stock Market Outlook May Still Be Strong Even If 2020 Starts Slow
Despite a sizeable…