The early rise in the Dow came as China’s Shanghai Composite rose more than 4%, besting a previous high set on March 2, 2016. Top Chinese officials continue to provide a vote of confidence in the country’s economy even with the threat of tariff wars being a possible disruptor.
“A deceleration in growth may put China more on the defense when it comes to trade negotiations, particularly relative to a US economy that continues to grow above trend,” said Katie Nixon, CIO at Northern Trust Wealth Management. “Trade is a key investment risk, and the resolution of the dispute with China may act as a drag for the foreseeable future.”
In the meantime, earnings weeks continue for U.S. equities as companies continue to report third quarter results with tech giants like Alphabet (Google’s parent company, Microsoft, Twitter, and Amazon scheduled to report. As investors begin to digest more results, the recent flight from stocks in the month of October could see more skittish investors returning.
“You need the market to calm down for investors to jump back in,” said Jeremy Klein, chief market strategist at FBN Securities. “Hopefully, earnings will help with that.”
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