S&P 500 on the verge of storming out of correction territory on reports the EU-U.S. avoid trade war
The S&P 500 index jumped in late-Wednesday trade, putting the broad-market index in position to emerge from correction territory on the heels of reports that President Donald Trump and European Union official Jean-Claude Juncker have avoided a trade war between the U.S. and the eurozone. A close above 2,839.10 would mark the index’s emergence from correction territory, defined as a drop of at least 10% from a recent peak. The S&P 500 fell into correction territory on Feb. 8, hitting a low of 2,581 and if it closes 10% above that level, most market technicians view such a climb as characterizing an official end of an asset’s corrective phase. The Dow Jones Industrial Average remains several percentage points from emerging out of correction territory, while the Nasdaq Composite Index has notched at least three records so far in July. Wednesday’s advance came amid news that Trump and Juncker have struck the broad outlines of an agreement to ease trade tensions that have been a main source of anxiety for market participants for weeks.