The optimism surrounding markets and investors as well as the tension caused by the political turmoil facing the US have all led to mixed trading sessions that have accelerated US equities towards the longest bull market ever>
S&P ended last Wednesday’s trading session at less than 0.1% at 2,861 points, its biggest rise in more than nine years. Meanwhile, the Dow Jones Industrial Average fell 0.3% to 25,733 points, and the Nasdaq Composite Index rose 0.4% at 7,889 points. This comes amid optimism surrounding talks between US and Chinese officials aimed at trying to reduce further tensions caused by the trade conflict between the two largest economies in the world.
At the same time, US officials are also seeking to conclude discussions with their Mexican counterparts on the rewriting of the North American Free Trade Agreement (NAFTA), to which Canada may also join in reaching a final agreement between the three North American countries.
It is important to note that the progress of these talks, whether with China or Mexico, has helped to ease the effects of the political scandals that hit President Trump’s administration on Tuesday, which began with the conviction the former Trump campaign manager and the guilty plea of Trump’s the former lawyer.
According to senior economic analysts, the improvement and growth of the US stock market is an indication that investors do not care much or are not concerned about political matters at the moment. This ultimately shows that the economy is in good shape and there is no sign of a possible recession.
The Federal Reserve has indicated that it may decide to raise rates this year soon, especially amid the strong economic growth in the United States.
Oil-related stocks gained more than others, with ExxonMobil up 1.4%, Chevron up 0.8% and ConocoPhillips up 1.6%.
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