Markets are now trading on hope which has been seen in the last trading session. A hope of resolution or you may be called it an initiative or willingness to proceed with negotiations with a positive approach especially made by China and interested shown by America to protect the prolonged trade dispute between these two spread optimism and easing the fear of recession risk.
The Dow Jones Industrial Average is now more than 300 points higher from the previous day and 10 out of 11 sectors led The S&P 500 on track for its first weekly gain in five weeks. adding 1.48% the tech-dominated benchmark Nasdaq also joined the party.
So let's come to the showstopper for the day. Industrial, tech, financial and energy stocks enjoying the biggest gains among them Caterpillar rose 2.5% and exposed to global trade currents, to lead the Dow with Home depot while Dollar General soared after the discount retailer reported quarterly results that were better than analysts were expecting as the stock rallied along with the chipmaker stocks into Thursday's open to taking the top position among S&P 500 stock. If we check on sector-specific, IT gains 1.9% and industrials increase 1.8%; utilities and real estate hold their gain near about 1% to trail the broader market. Microsoft and Apple in technology stock, JP Morgan in financial stock, American Airlines Group in the industrial sector, and social media giant Facebook in the communication sector led the broader market.
From the economic point of view, data on the consumer is the primary growth engine of the U.S. economy which was revised even higher than its previous pace. The government reported that second-quarter GDP grew 2.0% at an annualized pace, Personal consumption grew 4.7%, up from the 4.3% pace which is at the best since the final quarter of 2014 can put investors in a buying mood. Now Investors are awaiting the monthly jobs report and manufacturing data next week. It may provide guidance on the likelihood of another rate cut from the Federal Reserve which will be held in the mid-September meeting.
Wall Street is now enjoying preholiday sessions also one can describe it a successful week if we ignore Tuesday's market session. The market is nicely reversed after Friday's blood bath on the previous week and hopes this week maybe end with a sweet note. The last day of this week is yet to come but the broader index of the US stock market closed higher and continuing the uprising.