Wall St edges higher on stimulus efforts, trade hopes

Wall Street drops after China cancels visit to Montana farmland

2 Federal Reserve officials highlight deep di...

Stocks kept on paring increases after a newspaper manager at the official paper of the Communist Party of China tweeted that China was in no hurry to make an economic agreement with the U.S.

"Trade policy uncertainty remains elevated, US manufacturing already appears in recession, and many estimates of recession probabilities have risen from low to moderate levels", he said, adding that the yield curve is inverted, and USA policy rate remains above government bond yields for almost every country in the Group of Seven.

Analysts had blamed the ruction in the $2.2 trillion repo market, where banks and Wall Street dealers borrow using mostly Treasuries as collateral, on huge payments for taxes and on bond supply.

On Wednesday, the Federal Reserve voted to cut borrowing costs by a quarter of a percentage point to a range of 1.75% to 2.00%.

Chinese agriculture officials canceled a planned visit next week to Montana as part of a tour of farm states as U.S. -China trade war could be in trouble.

The reports about the Chinese delegation came after President Trump said at a news conference that he wants a complete deal with China and won't accept one that addresses only some of the differences between the two nations.

CNBC reported on Thursday that the group was slated to visit Montana and Nebraska.

The delegates, who had been set to visit USA farm states, will return to China sooner than originally scheduled, the Montana Farm Bureau said, pushing the major indexes into negative territory.

The Nasdaq Composite dropped 0.8 per cent to 8,117.67.

Investors were also watching a fourth day of Federal Reserve intervention in the fixed-income markets.

This week's rate cut followed an even larger shift in the Fed's policy outlook since late a year ago, when many officials expected they would still be raising rates through 2019. The Bureau of Economic Analysis's most recent reading on core personal consumption expenditures (the Fed's preferred measure, which strips out food and energy) showed inflation of 1.6% in the month of July. Though that didn't happen, the Fed injected $200 billion into the repo market to try to keep overnight interest rates, which had spiked to 10%, in check.

On Monday, oil prices spiked more than 14 percent after a key Saudi Arabian oil processing facility was attacked.

The British pound lost 0.44% against the dollar while the euro was off 0.18%. He gave two primary reasons: expected slower USA economic growth and inflation well below the Fed's 2% target rate.

Oil futures spent much of the day in positive territory but crude oil turned south, falling 0.07% to $58.09 a barrel and Brent crude rose to $64.67, up 0.61%.

Financial stocks veered lower as bond yields declined. Gold added 1.15% to $1,523.60 an ounce while silver gained 0.73% to $18.015 an ounce.

The S&P 500 posted 21 new 52-week highs and no new lows; the Nasdaq Composite recorded 30 new highs and 38 new lows.

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