After a volatile day on Wednesday, the S&P 500 regained some strength on April 6. It bounced back from its 50-day moving average and closed positive. Seven out of 11 major S&P 500 sectors closed positive on Thursday. The energy sector led the market.
On Thursday, the market was higher ahead of a two-day summit between President Trump and President Xi Jinping. Trump’s Administration made it clear that the summit is just a relationship-building meeting. It isn’t a major political meeting. The main objective is to set a framework for discussions on trade and investment. Economic data also supported the sentiment. According to the Department of Labor, US initial jobless claims fell to 234,000 last week from 259,000 jobless claims. It’s less than 250,000 expected jobless claims and the highest weekly decline in almost two years.
US attacked Syria
The market’s focus shifted to the US attack on Syrian airfields on Thursday night. According to the military, the cruise missile launch on Syria is in response to Syria’s use of banned chemical weapons. It added that the target was Shayrat Airfield in Homs province in western Syria. Shayrat Airfield is where the chemical weapons were made. According to reports, the attack didn’t disable the entire Shayrat Airfield base. It was meant to disable the base’s ability to support another chemical attack.
The market is also looking forward to the release of private non-farm payrolls and unemployment rate data scheduled to release on Friday. It also focuses on FOMC member Dudley’s speech scheduled after the economic data release.