NYSE Rise: Dow Jones Closed with a 500 Point Increase

NYSE Started the Week on a Positive Note

The New York Stock Exchange closed the first trading day of the week with a strong increase. The Dow Jones Index gained over 500 points, reaching 46,706.58 points, marking a rise of %1.12. Other indices also saw similar momentum; the S&P 500 index rose by %1.07 to 6,735.07 points, while the Nasdaq index climbed by %1.37 to 22,990.54 points.

Hope for Compromise in Trade Tensions

The uncertainties surrounding the trade tensions between the U.S. and China had caused significant fluctuations in the stock market last week. However, the positive rise observed on the first day of the week, led by technology stocks, emerged as one of the factors reducing investors' risk perception. The conciliatory rhetoric of U.S. officials regarding the negotiations with China has been one of the main factors increasing optimism in the markets.

Tariff Negotiations Begin Between Two Countries

Negotiations aimed at resolving the trade tensions between the U.S. and China are reported to take place this week in Malaysia. Additionally, U.S. President Donald Trump stated that he and Chinese President Xi Jinping would reach “a very fair agreement” and make “a strong trade deal” during their planned meeting in South Korea.

Government Shutdown Affects Markets

On the other hand, it is noteworthy that the federal government has been shut down since October 1 due to budget disagreements in the U.S. White House National Economic Council Director Kevin Hassett expressed hope that the government shutdown could end this week. Hassett indicated that if an agreement cannot be reached this week, the White House is prepared to take stronger measures.

Economic Data on Investors' Agenda

The government shutdown has caused disruptions in the flow of economic data, while the inflation data to be released prior to the U.S. Federal Reserve (Fed)'s meeting next week is critically important for investors. Additionally, the %3.9 rise in shares of major technology company Apple indicates a strengthening trend in iPhone demand. This week, financial results from giants such as Tesla, Ford, Netflix, Procter & Gamble, Coca-Cola, IBM, and Intel are expected to be announced, which could further increase volatility in the markets.