Nasdaq started in quiet mood but as of writing manage to hit the daily high at 7,943 as traders are nervous ahead of trade talks between US and China following conflicting reports about the progress being made. The trade talks outlook remains volatile as both sides give and take. Vice Premier Liu said that China willing to cooperate with the US on trade balance, market access and investors’ protection.
On the macro data front the number of Americans filing applications for unemployment benefits unexpectedly fell last week, the Initial Jobless Claims came in at 210K, below expectations of 219K in October 4. The US CPI monthly figure came in at 0.0%, which was lower than the 0.1% that analysts had forecasted. Furthermore, the US Core CPI figure came in at 0.1%, a tad lower than the market consensus figure of 0.2%.
Investors now increasing their bets for a cut by Fed later this month, they see an 85% chance of the Fed to lower interest rates in late October; that will be supportive for stocks.
The Dow Jones Industrial Average started 0.53% higher at 26,505, while the S&P 500 trading 0.52% higher at 2,934. The CBOE Volatility Index (VIX) adds 1.34% today at 18.89 to confirm the nervous market mood.