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US markets snap two-day losing streak to end significantly higher on Tuesday

31 Oct 2018 Evaluate

Snapping two-day losing streak, the US markets ended significantly higher on Tuesday as President Donald Trump signaled that the US is ready to reach a deal to ease trade tensions with China, giving the market some much-needed relief. However, trading was volatile with the indexes choppy partly on the back of tariff worries amid fears about global growth and peak earnings.

President Donald Trump’s prediction the US will reach a great deal with China on trade offset some of the concerns, although the president also warned of more tariffs if a deal is not possible. The comments from Trump came after a private report said the US is preparing to announce tariffs on all remaining Chinese imports if next month's talks between Trump and Chinese President Xi Jinping fail to ease the trade war. Trump and Xi are expected to meet on the sidelines of a Group of 20 summit in Buenos Aires, Argentina, beginning November 30.

Adding optimism, the Conference Board showed a continued increase in consumer confidence in the month of September. The Conference Board said its consumer confidence index rose to 137.9 in October from a downwardly revised 135.3 in September. Street had expected the consumer confidence index to drop to 136.3 from the 138.4 originally reported for the previous month. With the increase, the consumer confidence index reached its highest level since hitting 142.5 in September of 2000.

Dow Jones Industrial Average surged 431.72 points or 1.77 percent to 24,874.64, Nasdaq gained 111.36 points or 1.58 percent to 7,161.65 and S&P 500 was up by 41.38 points or 1.57 percent to 2,682.63.

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