US stock indexes all rose after a report said the US could reduce taxes on Chinese goods in its trade negotiations.
The idea was given by Finance Minister Steven Mnuchin, according to the Wall Street Journal. However, the report added that Mnuchin faced resistance from US Trade Representative Robert Lighthizer, who argued that any concessions could be considered a sign of weakness.
The report helped stocks to the highest level of the day, with the Dow Jones industrial average gaining more than 250 points. S&P 500 and Nasdaq Composite all gained about 1% after the report.
However, the main indexes failed to peak after the Ministry of Finance spokesman working with the trade group said: None of Mnuchin Minister and Ambassador Lighthizer made any recommendations for anyone involved in tariffs or other parts of negotiations with China. This is an ongoing process that has not yet achieved concrete results.
A senior government official who attended a trade meeting with the president on Wednesday told that there was no discussion about tariff removal. Currently, the official also said that President Donald Trump was not interested in making a decision right now because that puts him in a weak position.
The Dow closed up 163 points, escaping from the correction. The S&P 500 ended the day up 0.76% while the Nasdaq rose 0.7%.
Caterpillar shares rose 2.2%, while Boeing increased 2%. Shares of Caterpillar and Boeing are considered the bell for global trade when operating these two companies in relation to foreign markets. Apple also increased 0.6%.
Netflix is expected to report today. This stock is currently the brightest star in the market in 2019 when it has increased by more than 31%. Netflix’s profit will increase sharply after the online giant announced it would raise monthly subscription prices from 13 to 18 earlier this week.
Morgan Stanley reported profits and unimproved revenue for Wall Street. The company’s results have been pulled down by poor achievements in business enterprises and asset management. Morgan Stanley shares fell 4%. Citigroup, J.P. Morgan Chase and Wells Fargo also reported quarterly earnings this week.