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US stocks continue as Nafta talks



Technology earnings boosted the S & P 500 on Wednesday, bringing the index to its fourth record in a row as investors watched the latest trading trends.

The S & P 500 added 0.3% during the tech-heavy one

Nasdaq
Co

mposite climbed 0.6% and was also at a new all-time high. The Dow Jones Industrial Average has recently risen 15 points, or less than 0.1%, to 26078.

Optimism over trade has recently supported share prices as the US negotiated an agreement with Mexico earlier this week China. Fears that protectionist policies will weaken the global economy have weighed on markets throughout the year, but some analysts see recent developments as a sign that the Trump government wants to avoid growth-inhibiting measures.

After markets were pleased on Monday after the announcement of the agreement with Mexico, investors are waiting to see if further compromises will follow. Some remain skeptical that after months of escalation rhetoric, the US and China can reach a timely agreement between the world's largest economies.

With market uncertainty persisting, some investors continue to favor technology companies that continually increase their revenues and are less sensitive to global growth.

"These are the big producers in terms of sales," said

John Toohey,

Head of Stock at USAA Asset Management. "It's still attractive to investors at a time when global growth has been relatively slow."

The information technology S & P 500 sector rose 0.7% for the ninth time over the past 1

0 sessions.

Hewlett Packard Enterprise

rose 3.7% after raising earnings guidance for the year and exceeding expectations in the last quarter.

Amazon.de

and Google Parent Alphabet were also among the leaders of the S & P 500 after

Morgan Stanley

increased its price targets on the Internet.

Even within the technology sector, investors generally favored that software and Internet companies are less dependent on trade, especially with China. Some hope that agreements with Canada and the European Union will make the negotiations with the Asian nation less contentious.

Canadian Foreign Minister

Chrystia Freeland

arrived in Washington on Tuesday to meet

Trump card

The governing parties are trying to accelerate the negotiations between the two neighboring countries.

"We can see swift dealings with countries like Mexico, Canada and the EU, while the discussion with China seems to be more deeply anchored," said

Kiran Ganesh,

Head of investment advice at

UBS

Global Wealth Management.

Apart from trade conflicts with China and its Nafta co-signatories, the US has also taken a more aggressive stance on Turkey in recent months, with Washington and Ankara imposing duties on each other.

The escalating tensions hit the Turkish lira, which fell further on Wednesday. The lira fell 2.2% against the dollar after the Turkish central bank said it had doubled the bank's credit limits for overnight transactions in the interbank money market. Rating Company

Moody & # 39; s

downgraded nearly 20 Turkish financial institutions on Wednesday, pointing to a heightened risk of worsening financing

Despite fears that weakness may spread in Turkey and other emerging markets, resilient economic and earnings data has supported equities.

U.S. Economic growth was slightly stronger in the second quarter than previously assumed, the Commerce Department said Wednesday, and corporate earnings continue to rise steadily.

Investors looked at Thursday's inflation data for recent consumer price trends as some are still worried That inflation will gradually accelerate and interest rates rise could jeopardize corporate earnings.

On Wednesday, the WSJ Dollar Index, which tracks the dollar against a basket of 16 other currencies, rose 0.1%. The yield on the 10-year US government bond rose from 2.884% to 2.891%, according to Tradeweb. Yields rise when bond prices fall.

Elsewhere, the Stoxx Europe 600 added 0.2%.

In Asia, the Japanese Nikkei finished 0.2% higher, while the Shanghai Composite Index fell 0.3%. Hong Kong's Hang Seng gained 0.2%.

Write to David Hodari at [email protected] and Amrith Ramkumar at [email protected]


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