The three dominant U.S. indexes closed higher on Monday despite a new announcement from the United States that 10 percent tariffs on $200 billion of Chinese goods will go ahead as planned by next week. China was compelled to impose retaliatory levies in a similar amount on $60 billion of U.S. commodities after the announcement from the Trump administration.
Markets were performing inconsistently for the past months since May amid news of escalating trade war between the world's two largest economies. Analysts have come up with their forecasts, with some making predictions on the next economic downturn as big or worst than the Great Recession while some making their bets on who are the clear winners and losers amid the conflicts.
Companies have been rerouting their productions and supply chains to markets not impacted by the trade tension which few economists say is the biggest of its kind.
In the past months, however, the expected major aftermath of the tit-for-tat trade war has remained to be seen despite the strong rhetoric coming from the United States and China. By this time around, the markets have relaxed with investors becoming more confident that economies will sustain their resiliency amid the trade spat.
Reuters reported that Dow Jones Industrial Average climbed to 188.84 points to 26,246.96 with Nike and Boeing leading the performance. More so, the 30-stock Dow also performed impressively for five out of six days.
Reuters also noted that the S&P 500 gained 0.5 percent to close at 2,904.31. The same positive performances were observed over the Nasdaq Composite with its ascent of 0.8 percent to 7,956.11. Netflix, Apple, Amazon, and Alphabet pulled the index higher.
In separate reports, CNBC noted that Asian markets rose on Wednesday. The same movement was observed in Australia's ASX 200, rising 0.3 percent with both the materials and energy sectors ascending to 1.59 percent and 1.16 percent correspondingly. Australia also saw its mining stocks soaring with shares of Rio Tinto climbing 2.5 percent, Fortescue rising 3.18 percent and BHP up by 2.19 percent.
In Japan, Nikkei 225 climbed 1.51 percent and the Topix index up by 1.5 percent as well. In South Korea, the Kospi remained in its status without much movement that could indicate a negative effect.
The European stocks, meanwhile, is at a momentum with the pan-European Stoxx 600 index closing at a high note with 0.11 percent increase.
The fresh rounds of tariffs from the United States and China are set to take effect both on Sept. 24.
