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US Market rises on signs of geopolitical calm, trade optimism

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Capital Market
Last Updated : Jan 10 2020 | 9:04 AM IST
The US stock market finished session higher on Thursday, 09 January 2020, as signs of geopolitical calm pulled investors back into highflying stocks. Reassuring signs that trade negotiations remain on track also gave the major indexes a boost throughout the trading session. At closing bell, the Dow Jones Industrial Average gained 211.81 points, or 0.74%, to close at 28,956.90, while the S&P 500 index rose 21.65 points, or 0.67%, to 3,274.70. The Nasdaq Composite Index added 74.18 points, or 0.81% to 9,203.43.

Investor sentiment was buoyed by remarks by President Donald Trump on Wednesday who responded to the Iranian attacks by Iran by playing down their importance, saying that no U.S. casualties were sustained and that only 'minimal' damage was done to U.S. military facilities in Iraq.

On the trade front, China said its top trade negotiator, Vice Premier Liu He, will travel to Washington next week to sign a phase-one accord, the first official confirmation by Beijing on the truce's signing.

President Donald Trump said his administration will start negotiating the Phase 2 trade agreement soon but that he might wait to complete any agreement until after November's presidential election.

Meanwhile, Federal Reserve Vice Chairman Richard Clarida said Thursday that the economy was on solid ground, but stressed that the Fed's interest-rate policy may be changed at any meeting. Separately, New York Fed President John Williams said the world's central banks have to prepare for a long stretch of low interest rates.

St. Louis Fed President James Bullard said Thursday that the central bank has a reasonable chance of achieving a soft landing for the U.S. economy this year, despite geopolitical concerns. He sees trade tensions continuing, but believes businesses have found ways to work the disruptions.

Apple Inc gained 1.7% on twin support from data showing iPhone sales jumped more than 18% in China in December, as well as a price target hike by Jefferies on expectations of a strong finish to 2019.

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First Published: Jan 10 2020 | 7:24 AM IST

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