On Wednesday, the S&P 500 and Nasdaq Composite increased slightly, building on a record-setting streak after the publication of higher than expected economic data.
The broad index rose by 0.1%, while the Nasdaq rose by 0.3%. The Dow Jones Industrial Average has touched an all-time high before trading down 22 points, or 0.1%.
Apple and Facebook amounted 0.5 per cent and 1.4 per cent respectively to Wednesday's profits. Amazon sold 0.9% higher while Netflix improved 0.7%.
Durable goods orders rose by 0.6% in October, while analysts anticipated a 0.8% decrease. In the meantime, every week unemployment claims dropped from 227,000 to 213,000. GDP in the third quarter has been updated to display a 2.1 per cent growth.
The strong data comes ahead of the Federal Reserve publishing its Current Economic Conditions Commentary Report, also regarded as the Beige Book, at 2 p.m. The commentary provides insight into the state of the biggest economy in the world and an insight into how the Fed views its monetary policy position. The Fed has reduced rates three times this year and has signalled that for the foreseeable future it is concerned about maintaining rates at present levels.
Throughout the past month, the global indexes have been on fire as the excitement grows about trade talks between the U.S. and China. The Dow and S&P 500 rose by 4.3% and 3.9% respectively, while the Nasdaq fell by almost 5%.
President Donald Trump stated negotiations are close to an original trade settlement being reached on Tuesday. Trump's bullish trade statements preceded a phone call between U.S. and China leaders. The negotiators decided to continue to work on the remaining issues.
Such remarks came after Trump said in the works last month that there was a "step one" trade agreement.
Since the beginning of 2018, Washington and Beijing have enforced tariffs on each other's products worth billions of dollars, battering financial markets and creating business and consumer viewpoint.
The activities of Wednesday come on top of the U.S. Thanksgiving holidays for which on Thursday the business will be shut. Normally, it was a good day for stocks on Wednesday before Thanksgiving. Information from the Almanac stock trader reveals the Dow has fallen just 16 times a day before the holiday in the last 66 years.
"Stocks are established for a strong year-end finish," DataTrek Research co-founder Nick Colas said in a comment. "Not only do cyclical groups work, but interest rates remain low as well. Because selling tax losses should not be a problem this year (that's what destroyed December 2018), there should in effect be no hindrance for stocks that finish the year on a very high note.
Tags : S&P 500, Current Economic Conditions Commentary Report,