The Dow Jones Industrial Average is looking for back-to-back positive trading sessions as it opened up 200 points on Wednesday.
The S&P 500 and NASDAQ followed suit–the former up by 0.72 percent and the latter by 0.51 percent. The markets have been on the proverbial roller coaster ride the past two weeks, fluctuating on trade concerns between the United States, China and European Union.
Helping to boost the markets are reports that U.S. President Donald Trump’s latest moves to restrict Chinese investment in U.S. technology companies are less strict than anticipated.
Related: Tech Safe Havens Amid Rising Trade Tensions
In addition to the tariff wars with China, the U.S. is also in the midst of retaliatory tariffs on $3 billion worth of their goods by the EU after imposing duties on European steel and aluminum.
“The equity market will remain choppy until trade uncertainties recede and global growth momentum bottoms,” said strategists at MRB Partners in a note. “While the threat of protectionism has risen in recent weeks, we do not expect trade restrictions to derail the global expansion.”
Bullish Small Cap Market
Despite the larger markets feeling the ebbs and flows amid trade concerns, the small cap market continues its bullish strength–up about 7.6 percent year-to-date. Not since 2013 has the Russell 2000 performed this well.
“We took a look at future returns after these long weekly win streaks on the Russell 2000, sure enough small caps continued to do well,” Ryan Detrick, senior market strategist at LPL Financial, told CNBC’s “Trading Nation” on Tuesday. “Small-cap leadership is a good thing. It could be carving the way potentially for this bull market to continue as the S&P’s second half of the year also does well.”
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