American actions increased yesterday and the S&P 500 has marked its longest victory sequence since 2004 to finish the week.
The DOW closed 564 points higher, or 1.39%. The wider S&P 500 increased by 1.47% and the Nasdaq composite heavy in technology won 1.51%. The Dow and the S&P 500 displayed their ninth consecutive daily gain.
Here are two key factors that can help explain market optimism:
China signals the opening to commercial talks: Actions have regularly joined in recent days when President Donald Trump has softened his tone on the American-Chinese trade war and the White House officials have teased potential trade agreements with other countries, including India.
For its part, China said yesterday that it “currently assesses” the United States’s proposals to start commercial talks, in a subtle change that could open the door to negotiations. And the actions extended their gains after a report by the Wall Street Journal that Beijing plans to respond to American concerns concerning its role in international fentanyl trade.
Uncertainty still surrounds the trade policy of Trump’s rabbit stroke, and investors will be attentive to any potential development or delay in commercial progress during Trump break at 90 days on its “reciprocal” prices on countries other than China.
Job report better than expected: The stock market rally also received an increase in data from the Labor Department which showed that the economy added 177,000 jobs in April, exceeding the expectations of around 135,000 jobs.
“The markets pushed a sigh of relief this morning when the data on jobs have improved only expected,” said Chris Zaccarelli, director of investments at Northlight Asset Management yesterday. “While fears of recession still simmer on the rear burner, the dynamics of the purchase can continue – at least until the price break is exhausted.”
