US stocks trade higher on China-US trade optimism

US stocks trade higher on China-US trade optimism

NEW YORK, Jan. 9, 2019 (Xinhua) -- An electronic screen shows the trading information at the New York Stock Exchange in New York, the United States, Jan. 9, 2019. U.S. stocks closed higher on Wednesday after the summary of Federal Reserve

New York, Jan 10 (IANS) US stocks traded higher on Wednesday as trade talks between China and the US concluded.

The Dow Jones Industrial Average increased 140.50 points, or 0.59 per cent, to 23,927.95. The S&P 500 gained 13.78 points, or 0.54 per cent, to 2,588.19, Xinhua reported.

The Nasdaq Composite Index added 58.88 points, or 0.85 per cent, to 6,955.88.

All three major indices are on track for the third consecutive winning session this week as the latest trade negotiations between the world's top two economies showed signs of progress.

On the economic front, investors were waiting for the release of the Federal Open Market Committee' s minutes of its last meeting to look for hints about the central bank's future monetary policy.

On Friday, Federal Reserve chair Jerome Powell hinted at slower monetary tightening.

He said Fed officials were keeping a close eye on the voices of financial market, and that Fed policy was flexible and clung to real-time economic developments.

He added that the central bank would not hesitate to adjust its balance sheet reduction plan if it causes problems in the markets.

The Fed hiked interest rates for four times last year. Its rate hike pace was considered too rapid by some investors and market was rattled by it.

--IANS

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