The major indices drifted lower for most of the day, with traders waiting for President Trump’s press conference (expected at 2pm ET).
During the press conference, Trump announced that he will revoke Hong Kong’s favored trade status. Trump said “I am directing my administration to begin the process of eliminating policy exemptions that give Hong Kong different and special treatment.”
Before China’s new security law, the city was spared tariffs that the U.S. placed on China and given special treatment.
Although trading was volatile during Trump’s comments, his announcement wasn’t much of a surprise. Traders were afraid that the President would target China, or even worse, pull out of the Phase 1 trade deal. But this wasn’t the case.
After the dust settled, stocks rallied and eventually finished near session highs.
The afternoon rally put the S&P and NASDAQ into positive territory for the day, while the DOW ended with a small loss.
But overall it was a great week, with optimism over the re-opening of the economy driving stocks higher.
The S&P ended the week with a 3.0% gain, the DOW was up 3.8%, and the NASDAQrallied 1.8%.
Here’s where the major indices ended the day:
The S&P finished with a 0.5% gain. Up 15 points, the S&P ended at 3,044.
The DOW ended lower by 0.1%. Dropping 18 points the DOW closed at 25,383.
The NASDAQ was up 1.3%. With a 120 point gain the NASDAQ finished at 9,489.
Crude Oil (CL) finished with its best close in almost 2 months. Crude Oil finished higher by 4.8%, ending the session at $35.33 a barrel.
The battle between President Trump and Twitter (TWTR) is getting worse…
First there was Twitter fact-checking two of Trump’s tweets on Wednesday, followed by an executive order that could punish social media companies.
Then last night, Twitter flagged one of Trump’s tweets for “glorifying violence.” The flag came after the President sent a Tweet that contained the phrase “when the looting starts, the shooting starts” in response to the protests and looting in Minneapolis. Twitter ended the day with a 1.9% loss.
This upcoming week U.S. – China news and the reopening of the economy will continue to be the focus of traders. And on Friday we’ll get the highly anticipated Jobs Report for May.