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Sat, 23 Nov 2019 02:26 GMT

US Stocks Rise after News of Resumed China Trade Talks

Business

7Dnews London

Thu, 05 Sep 2019 13:38 GMT

US stock index futures rose on Thursday September 5th as the United States and China agreed to hold high-level talks in October, increasing hopes of a de-escalation in a trade war that has had negative effects on global economic growth, according to Reuters.

China’s Commerce Ministry said its trade team will negotiate with their US counterparts in mid-September in preparation for high level negotiations in early October.

Shares of chipmakers, sensitive to tariffs, rose in premarket trading, with Intel, Advanced Micro Devices and Nvidia gaining between 1.2% and 2%. Industrial bellwethers Boeing and Caterpillar each rose over 1%.

Apple led the FAANG group of tech stocks higher, gaining 1.1%, while Facebook, Alphabet, Netflix and Amazon rose between 0.8% and 1%.

The trade dispute between Beijing and Washington has affected global economic activity and destabilised financial markets. Investors are now pinning hopes on central banks to step in and ease monetary policy to help boost growth.

Among other stocks, Slack Technologies fell 13.1% after the workplace messaging platform on Wednesday forecast slowing revenue growth in the second half and a bigger than expected third-quarter loss.

The world's two biggest economies have been embroiled in a tense year-long tariffs row, which escalated on September 1st when both sides exchanged fresh levies on goods worth hundreds of billions of dollars.


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