Dow Jones Posts Positive Growth Following Fed Meeting
When the minutes of a Federal Reserve meeting revealed that it is keeping its patience regarding monetary policy, the Dow Jones stock index reacted highly positively. Recent data revealed that the Dow Jones index rallied to a 4-day winning streak.
Posting its fourth straight day of positive gains, the Dow Jones Industrial Average gained 91.67 points and closed at 23,879.12 points. On the other hand, the S&P 500 rose by 0.4 percent to 2,584.96 points scoring a four-day winning streak which is its longest since September 2018. Analysts have noted that the tech and energy sectors were among the prime drivers of the recent growth.
The Nasdaq Composite also posted positive growth. Its stocks went up by 0.87 percent to 6.957.08 points. One of the prime drivers of the growth is Apple which gained 1.7 percent. The energy sector also gained 1.5 percent, a growth which was boosted by a 5.2 percent increase in U.S. crude prices.
The recent growth on a number of markets has been attributed to the Federal Reserve's positive outlook when it comes to monetary policy. Despite the perceived negative effects of the trade war between the United States and China, the market has positively reacted to the temporary disruption of trade tariffs. Additionally, China and the United States are also engaged in trade talks, a move which was received highly positive by the market.
Prior to this recent growth, the market is wary over rising rates and the troubles brewing over the trade war. The slowdown of overall global growth and with the U.S. deemed to be on the brink of recession, investor confidence was at an all-time low. This resulted in a massive drop in the stock market.
Investors have also welcomed the resumption of trade talks between two of the world's biggest economies. Mid-level officials from Beijing and Washington have reported that trade talks are going fine. U.S. Undersecretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney described the trade talks saying, "It's been a good one for us."
The meetings held this week were the first few following the bilateral decision to temporarily lift tariffs on various goods. Both China and the United States agreed to a 90-day trade truce in order to resume trade talks.
China and the United States are involved in a bitter trade war for the better half of the previous year. The two countries have been slapping billions of tariffs over their goods, a decision that has affected both their economies and that of other countries that depend on them for trade.