US stocks posted strong gains at the beginning of the week on Monday, with the Standard & Poor’s and Nasdaq climbing to new all time highs. In addition, reports that the United States and Mexico are close to completing the trade agreement have added a lot of optimism to the markets.
Informed sources said that the NAFTA agreement was certain to be announced later in the day. Trump posted on Twitter about “a big deal looking good with Mexico!”. Morale also helped push the EU to speed up trade negotiations.
9 companies out of the 11 in the Standard Index reached their highest levels today, the most profitable sector being materials, with an increase of 1.38% as prices of metals and gold rose. It is well known that the industrial sector is sensitive to trading, and thus, it rose by 0.82%.
Boeing (1.5%), Caterpillar (2.5%) and Ford, General Motors and Chrysler Fiat all rose between 1.86% to 2.26%. According to analysts, these results give a lot of optimism in the market among traders in addition to the near completion of the NAFTA agreement with Mexico.
Although the news from the NAFTA agreement is the main driver of the market today, there are many other signs of strength in the local economy, especially regarding corporate earnings.
Federal Reserve Chairman Jerome Powell said on Friday that gradually raising interest rates by the central bank was the best way to protect the economic recovery, and also to maintain strong job growth and keep inflation under control.
During the morning trading session in the United States, the Dow Jones industrial average was also up along with the major US stocks, adding 213.17 points, or 0.83%, to close at 26,003.
The Standard & Poor’s 500 Index was up 18.15 points, or 0.63 percent, to 2,892. The Nasdaq Composite Index <.IXIC> was up 54.28 points, or 0.68 percent, to close at 8,000.
The defense sector declined by 0.29% and the real estate sector fell by 0.3%. Tesla shares also fell 1.9% after abandoning a plan to turn the electric car maker into a private company.