US stocks rise despite trade dispute, dollar hits two-week high

  • by Ahmed Mamdouh
  • May 17, 2019, 2:44 AM
  • 96 Views
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US stocks saw a significant gains by the end of Thursday’s session, as the Dow Jones added more than 200 points after the release of sanguine U.S. economic data.

The Dow Jones Industrial Average edged up 0.84 percent to finish at 25,862.68, S&P 500 rose 0.89% to 2,876.32 and NASDAQ Composite increased by 0.97% to 7,898.05.

Wal-Mart's earnings rose in the first quarter of the year, beating analysts' expectations, rising 1.4 percent to $101.31.

While trade concerns have aggravated after the U.S. ban on equipment sold by telecoms gear maker Huawei from U.S. networks, some investors believe a trade deal is still inventible.

U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer said they were planning to travel to Beijing for further negotiations.

US dollar climbs to two-week high after upbeat data

The US dollar climbed to a two-week high on Thursday after the release of upbeat economic data from the United States and amid new trade developments.

The dollar index rose to 97.70, the highest level since May 3, extending its rise for a third straight session.   

The advance in the performance of the green dollar came the release of data showing a higher than forecast building of new homes in April.

Furthermore, initial jobless claims fell to the lowest level in a month last week, reaching 212,000 from 217,000 a week earlier, while Philadelphia Fed manufacturing index hit a four-month high of 16.6 in May.

In terms of trade developments, the U.S. Commerce Department blacklisted Huawei due to its engagement in “activities contrary to U.S. national security and/or foreign policy interests.”

China’s Commerce ministry spokesman Gao Feng, in response, warned that China will defend "the legitimate rights of Chinese firms."

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at Ofeed.com, with 11 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from the American University in Cairo and a Bachelor Degree in Economics from the Faculty of Economics and Political Science, Cairo University.

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