The main US stock indexes are maintaining their record-breaking numbers due to optimistic expectations following President Donald Trump’s announcement of a “breakthrough” in trade talks with China on a new deal, as well as Boeing Chief Executive Officer Dennis Muilenburg’s resignation.
Since the trading on the US exchange began on 23 December, the Dow Jones Industrial Average (DJIA) has risen by 0.35% to 28 555,88 points . NASDAQ, on which stocks of leading tech companies are traded, has grown to 8 949,66 points, or 0.28%, while the S&P 500’s growth reached 0.11%, as it surged to 3 224,83 points. Thus, both NASDAQ and the S&P 500 hit new all-time highs.
Donald Trump touted a relief in the months-long tariff war speaking at a Turning Point USA meeting, saying that the US and China would sign “phase one” of a trade deal "very shortly".
"We just achieved a breakthrough on the trade deal and we will be signing it very shortly", he revealed after claiming on 20 December that he had a "very good talk" during a phone call with Chinese President Xi Jinping.
In turn, the tariff committee of China’s State Council announced on 23 December that Beijing was easing the import duties on more than 850 goods starting 1 January 2020.
Chief market economist at Spartan Capital Securities Peter Cardillo told Reuters that the developments in the trade row between the two leading economies are driving market sentiment.
“It’s a rally being based upon momentum buying now. Stocks are being marked up, and it will continue right up until year end”, he explained.