If the Dow, S&P 500, and Nasdaq surged to new record highs yesterday on US-China trade optimism, then all three pulled back today as that optimism waned. That’s the thing about headline risk driving market sentiment–one can take you up as easily as another can take you down.
So what happened? Yesterday, a Chinese Commerce Ministry spokesperson said that the US had agreed it begin rolling back existing tariffs. A US official confirmed something of the like in a separate announcement. This was enough to fuel market sentiment, and headline volatility worked in favor of the bulls.
But this morning, President Trump said that he did not agree to roll back existing tariffs. And that’s when stocks hit their lowest intraday moment, recovering a few hours later to hover just below their opening range.
All’s not entirely bad, however, as all indexes are up for the week–1.1% for the Dow, 0.6% for the S&P 500, and 0.8% for the Nasdaq. The Dow currently stands with three consecutive weekly gains, the S&P sees a winning streak of five, and the Nasdaq tops it all with six.
On another front, the consumer sentiment index came in at a favorable 95.7 for November, slightly below consensus estimates of 96 but within consensus range of 94.5 to 97.5.
Overall, stocks ended on a flatline, with the Dow and S&P 500 currently down -0.1%, with the Nasdaq advancing 0.3%. (Article written mid-day).
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