- Nasdaq Composite Index climbed 1.1% to 8,077.
- The S&P 500 index added 0.6% to 2,985.
- The DJIA was ended higher by163 points, or 0.6%, at 26,971.
Wall Street was back on form on Wednesday, reversing the prior session’s losses – and some, with the benchmarks gaining across the board with fundamentals being weighed and seemingly not so troublesome after all.
The implications of an impeachment enquiry into President Donald Trump were swept under the carpet, put down to much of the same old same old and the Dow Jones Industrial Average, DJIA, ended higher by163 points, or 0.6%, at 26,971. The S&P 500 index added 0.6% to 2,985, while the Nasdaq Composite Index climbed 1.1% to 8,077.
On the day, US President Trump was reported to have told reporters that a deal with Beijing could happen “sooner than you think,” and the House Speaker Nancy Pelosi’s late Tuesday announced that an impeachment enquiry into Trump’s interactions with his Ukrainian counterpart was about to take place which weighed on sentiment in markets was eventually taken with a pinch of salt – On Wednesday, the Ukrainian President Volodymyr Zelensky said he wasn’t pushed to investigate former Vice President Joe Biden’s son Hunter – and US stocks were able to recover mid-week.
US data heating up
In the US, new home sales rose 7.1% to 713k in August, close to post-GFC highs. “The supply of new homes dropped to 5.5 months from 5.9 months. The data follow other positive development in housing recently with starts, permits, and the NAHB index all rising. Low mortgage rates from the Fed’s recent cuts are contributing to the rise in activity,” analysts at ANZ Bank explained.
The index was back above the 21 and 50 4-hour moving averages and up from the lowest levels since September 10th. The bulls are testing the trend line resistance at the highs of 27016 which guard a run back to the Sep. highs in the 27300s.