Dow shrugs off impeachment talks and aims for more gains

The Dow and the US stock market aimed for their second day of gains on Thursday, as hopes for a trade deal with China continue to carry equities higher.

The market shrugged off the drama surrounding the impeachment inquiry into President Donald Trump so far.

European markets are up and US stock futures are modestly higher. Dow futures were more than 40 points, or 0.2% higher, while the S&P 500 futures were up 0.1%. Nasdaq Composite futures were flat.

All three indexes recorded their best day in two weeks Wednesday, and the S&P 500 and the Nasdaq snapped a three-day losing streak.

Stocks bounced higher after Trump said Wednesday a trade deal with China could happen soon.

“We have heard this sort of commentary before, and it hasn’t always worked out, but the mood is upbeat nonetheless. President Trump has a habit of changing his tune when it comes to China, so some traders might remain skeptical of the remarks,” wrote David Madden, market analyst at CMC Markets in a note.

The United States also signed a trade deal with Japan on Wednesday, which reduced tariffs on some agricultural and industrial goods, and perhaps boosted hopes for a deal with China further.

In economic data, the final estimate of second-quarter US GDP was in line with expectations at 2%.

The advance goods trade balance for August showed the trade deficit expanded slightly to $72.83 billion. Jobless claims for the week ended September 21 were also broadly in line with expectations at 213,000.

Investors are also paying attention to speeches from Federal Reserve officials, including Vice Chairman Richard Clarida, who is due to speak at 11:45 a.m. ET.