Major US equity indices opened with solid gains on Thursday and rebounded from previous session’s losses led by intensifying trade disputes.
On Wednesday, investors reacted negatively to the Trump administration’s latest threat to impose another round of tariffs on Chinese imports, snapping a four-day winning streak for the US stocks.
However, signs that the world’s two biggest economies are willing to resume trade talks and resolve their differences helped revive investors’ appetite for perceived riskier assets – like equities.
This coupled with expectations of strong profit growth from the upcoming second-quarter earnings reports remained supportive of the positive momentum during the opening hour of trade.
On the economic data front, the US consumer inflation (CPI) increases 0.1% in June and the yearly rate climbed to a 6-year high level of 2.9%, clearly reflecting rising inflationary pressure in the US economy.
Meanwhile, weekly initial jobless claims for the week ended July 7 fell by 18,000 to 214K, back towards the lowest level in almost 50-years, albeit did little to assist extend the bullish momentum.