The session results indicated that the selective index Dow Jones Industrial Average advanced by 0.44%, while the tech-heavy Nasdaq lost 0.76% and the broad S&P500 fell by 0.16%.
“We started the day on a negative note due to the trade situation” between the US and China, said Peter Cardillo of Spartan Capital Securities.
China stated today its commitment to “fight to the end” over tariffs, although it remains open to discussions with the US.
Since Tuesday, China has implemented special duties on US ships entering its ports, reportedly in retaliation for similar actions enforced by the US on Chinese vessels, effective the same day.
However, later on, “the prospects of monetary easing, coupled with an accommodative tone” from Fed Chair Jerome Powell, “helped (…) a recovery in stocks,” described Jose Torres of Interactive Brokers.
Powell expressed concern today about the weakness in the US labor market, two weeks ahead of a Fed meeting where a reference interest rate cut is expected to be decided.
Monetary easing is conducive to stimulating economic activity and favoring corporate profits.
