Major equity indexes started the last day of the week with strong gains amid optimism surrounding the U.S. – China trade talks and a strong recovery witnessed in crude oil prices. As of writing, the Dow Jones Industrial Average and the S&P 500 were both adding 0.5% on the day while the Nasdaq Composite was up 0.4%.
Among the 11 major S&P 500 sectors, trade-sensitive materials and industrial sectors both gain a little less than 1% in the early trade while energy is rising 0.8%. Today’s data from the U.S. also showed a higher-than-expected increase in industrial production in December to provide an additional boost to these sectors. The only sector that stays flat on the day is financials.
In addition to hopes of China and the U.S. reaching a trade deal, additional measure from China to boost the economic growth helped the market sentiment improve on Friday and allowed crude oil prices to stage a decisive recovery. Meanwhile, German Economy Minister earlier in the day stated that the EU – U.S. trade talks would bring down trade barriers and build new transatlantic trade ties.
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