Dow Jones Industrial Average jumps 162 points
The Dow jumped 162.94 points, or 0.6%, to 26,970.71 on Wednesday. The S&P 500 climbed 0.6% to 2984.87. The Nasdaq Composite advanced 1.1% to close at 8077.38. The gains come after the S&P 500 and Nasdaq had their worst day in a month on Tuesday amid fears over President Donald Trump’s political future.
Trade optimism trumps impeachment
Stocks rose because Trump said to reporters that a U.S.-China trade deal could come sooner than expected. Both countries have been engaged in trade negotiations since last year. The back and forth between China and the U.S. has sent ripples through global financial markets. Trump later said the U.S. struck an initial trade deal with Japan. The upbeat news on trade helped offset some of the uncertainty coming from Washington.
A memo showed Trump asked Ukrainian President Volodymyr Zelensky if he could “look into” former Vice President Joe Biden and his son, Hunter. However, the note did not explicitly show a quid pro quo between the two leaders, giving traders some relief. The memo was released after House Speaker Nancy Pelosi announced Tuesday night will launch an impeachment inquiry on Trump.
Nike, ‘FANG’ rise
Nike shares led the way on Wednesday, rising more than 4% to an all-time high on better-than-expected results from the apparel giant. So-called FANG stocks — Facebook, Amazon, Netflix and Google-parent Alphabet — also rose broadly. Netflix gained about 4% while Amazon and Alphabet climbed 1.5% and 2.3%, respectively. Facebook advanced nearly 1%. It was the first gain for Netflix in six days.
What happens next?
Wall Street will keep looking for impeachment inquiry developments. It will also be watching Micron Technology’s quarterly results. Chipmakers have been battered by the back and forth between China and the U.S. on the trade front.
