Major Indexes Gain on Trade Talk Optimism
U.S. stock markets recorded gains on Wednesday as they were driven higher by optimism on potential trade talks between the U.S. and China. The S&P 500 opened in the positive side following two successive sessions of decline with a gain of 0.32%. The Nasdaq gained 0.29%, while the Dow Jones Industrial Average added more than 200 points at the opening.
The surge followed reports that top U.S. and Chinese officials could revive official talks on trade—a relief to investors who are watching ongoing tariff tensions.
Markets Eye Fed Decision as Trade Optimism Builds
Investor focus now shifts to the Federal Reserve, which concludes its two-day policy meeting later today. Although markets have already priced in a 96% probability that the Fed will keep interest rates steady, Fed Chair Jerome Powell’s comments on the economic outlook are still a source of concern.
Traders particularly want to know about the Fed’s future path for rates as inflation, labor tightening, and global threats remain overarching themes.
Labor Market Tight But Tariff Troubles Persist
On the economic front, the Bureau of Labor Statistics April’s jobs report highlighted improved-than-expected results as 177,000 new jobs were added, beating expected estimates of 138,000. Unemployment held steady at 4.2%, helping to support confidence in the labor market.
But Goldman Sachs Vice Chairman Robert Kaplan warned that the uncertainty over tariffs must be resolved to avoid a broader economic slowdown. “The tariff issues will have to be cleared up first before the U.S. economy continues to slow,” Kaplan said in an appearance on CNBC.
Analysts Cautiously Optimistic
While U.S. stocks have generally rebounded on positive news in U.S.-China trade, experts remain cautious. Even while hope is voiced, some caution that tangible outcomes will be slow to emerge.
As geopolitical risk and Fed policy overhang mood, investors are likely to tread carefully as they monitor both trade news and central bank signals over the coming weeks.
