After what can only be referred to as a complicated week for the U.S – China trade talks, President Trump stated earlier on Friday morning that a phase 1 deal is soon to be signed with China. Following the announcement, the S&P 500 and Dow Jones indices were reported gaining traction. Nasdaq, on the contrary, was reported downbeat as Tesla’s stock struggled after the launch of its Cyberpunk electric truck.
President Trump And Jinping Expressed Optimism For An Imminent Phase 1 Deal
While earlier reports this week had hinted at the prospect of a no-deal between the U.S and China until 2020, President Trump expressed confidence earlier this morning that a phase 1 deal is likely to be signed in the upcoming days. Chinese President Xi Jinping echoed similar confidence and remarked that Beijing is working diligently to resolve the concerns and finalize the phase 1 deal with the U.S.
The uncertainty revolving the U.S – China trade war has had major implications on global financial markets. According to financial analysts, the complications have kept the business sentiment under pressure, reduced investment, and hurt the economy at large.
S&P 500 And Dow Jones Indices Weekly Performance
The S&P 500 index opened at 3117.91 this week. Following the previous reports hinting that the phase 1 deal may be stretched into the year 2020, and President Trump threatening to impose punitive tariffs on Chinese goods if it refused to sign the deal, the index dropped sharply to around 3,094. Owing to the recent statements from both parties that have stirred up optimism once again, however, the S&P 500 index has retreated much of the losses and is currently trading at 3,106.61.
Dow Jones index has followed a somewhat similar pattern. Opening at 27,993 on Monday, it printed a weekly low of 27,696 amidst the trade complications. The recent optimism, however, has sent the index back up to the 27,834 level. Nasdaq, on the other hand, failed to recover the losses of the week even after the positive statements from Washington and Beijing owing to the slump in Tesla’s stock after the launch of its electric pickup truck.
Printing a weekly high of around $360, Tesla has dropped sharply to $332 as of Friday due to the wide criticism on its truck’s design. All in all, the S&P 500 index noted only two new 52-week lows this week while 13 news highs were reported. Nasdaq, on the other hand, recorded 43 new 52-week lows and 35 new highs this week.