US equities rebounded on Wednesday as US President Trump's comments that negotiations on a preliminary trade agreement with China were "very smooth" boosted investor optimism.
The three major U.S. stock indexes ended a three-day losing streak, with general gains, led by financial, health care and tariff sensitive technology stocks.
Trump's comments dovetailed with a Bloomberg report. Bloomberg reported Wednesday citing sources saying the two sides are closer to reaching an agreement on the scale of tariffs to be lifted by the first phase of a trade agreement between the United States and China.
Concerns that a stalemate in trade negotiations between China and the United States could lead to new tariffs on U.S. imports to China coming into effect as scheduled on December 15 have dampened confidence among market participants in recent days, bringing the three major U.S. stock indexes back from their record highs reached last week.
However, despite the ups and downs of the stock market due to the daily Sino US trade news, Doug cote, senior portfolio manager of VOYA investment management in New York, believes that investors should not ignore the solid underlying market fundamentals.
"The performance of any day is due to trade (News), but there are more abundant factors below," Cote said. "Consumers are hot. That's why the market is tough. It's going to be the best holiday season on record. "
"Everyone sees this trade war as a third world war, but it's not," Cote added.
The Dow Jones industrial average. DJI rose 146.97 points, or 0.53 percent, to 27649.78. The standard & Poor's 500 index. SPX rose 19.57 points, or 0.63 percent, to 3112.77. The Nasdaq composite index. Ixic rose 46.03 points, or 0.54 percent, to 8566.67.
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