Stocks jumped Thursday morning on news the Federal Reserve was considering lowering interest rates in the coming weeks; with the S&P 500 breaking its record high and the Dow Jones soaring more than 250 points.
“The S&P 500 surged 0.9%, hitting a record high of 2,954.33 as the tech and energy sectors outperformed. The Dow Jones Industrial Average gained 256 points at the open, led by Caterpillar and Exxon Mobil. The Nasdaq Composite was up 1.1%. The Dow was also within 1% of its record high, while the Nasdaq remained 1.3%,” reports CNBC.
“The Fed said Wednesday it stands ready to battle growing global and domestic economic risks as they took stock of intensifying trade tensions and growing concerns about inflation. Most Fed policymakers slashed their rate outlook for the rest of the calendar year by approximately half a percentage point in the previous session, while Chairman Jerome Powell said others agree the case for lower rates is building,” adds the financial website.
The Dow Jones also spiked more than 350 points Tuesday after President Trump confirmed he will be meeting with Chinese leader Xi Jinping at the G-20 summit; sending stocks to a near record high.
“The Dow Jones Industrial Average jumped 353 points as Apple and Boeing outperformed. The S&P 500 climbed 1.1% while the Nasdaq Composite advanced 1.6%. The S&P 500 also traded about 1% from its all-time intraday high of 2,954.13, which was reached May 1,” reports CNBC.
“Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting,” confirmed the President on social media.
Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.
— Donald J. Trump (@realDonaldTrump) June 18, 2019
“Certainly, there’s ground for optimism,” said one industry insider. “However, we have to remember there have been a lot of negotiations between China and the U.S. where they seem to be close to a deal and then things fell apart.”
A potential trade deal with China fell-apart at the last-minute months ago; sparking a series of tariffs between the two global trading partners.
“Over the course of the past two days, the United States and China have held candid and constructive conversations on the status of the trade relationship between both countries. The relationship between President Xi and myself remains a very strong one, and conversations into the future will continue. In the meantime, the United States has imposed Tariffs on China, which may or may not be removed depending on what happens with respect to future negotiations!” tweeted the President in May.
….into the future will continue. In the meantime, the United States has imposed Tariffs on China, which may or may not be removed depending on what happens with respect to future negotiations!
— Donald J. Trump (@realDonaldTrump) May 10, 2019