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US markets end mostly higher following Trump press conference

30 May 2020 Evaluate

The US markets ended mostly higher on Friday after a news conference from President Donald Trump on China turned out to be not as disruptive to trade and finance as had been feared. However, investors were more attuned to the fact that Trump did not mention the trade deal with China signed in January and he did not level sanctions directly against Beijing. Trump did suspend entry into the US by some Chinese nationals, and said he would cut ties with the World Health Organization, over what he claimed was China’s total control of the heath agency. He also said that the US would study the differing accounting practice of Chinese companies listing on US exchanges and begin to end Hong Kong’s special trading status.

On the economic data front, the Commerce Department released a report unexpectedly showing a substantial increase in US personal income in the month of April, reflecting the distribution of stimulus checks by the federal government. The Commerce Department said personal income spiked by 10.5 percent in April after tumbling by a revised 2.2 percent in March. The jump in personal income came as a surprise to participants, who had expected income to plunge by 6.5 percent compared to the 2.0 percent slump originally reported for the previous month.

Nasdaq gained 120.88 points or 1.29 percent 9,489.87 and S&P 500 was up by 14.58 points or 0.48 percent to 3,044.31, while Dow Jones Industrial Average declined 17.53 points or 0.07 percent to 25,383.11.

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