The stock market hit new highs on Tuesday, closing the day by closing a somewhat quiet session where small caps had taken some dramatic dips. Both the Standard & Poor’s 500 and the Dow Jones Industrial Average moved ahead 0.3 percent; the Nasdaq Composite also grew, by 0.2 percent. Small caps, however—those tracked in the Russell 2000 Index—tumbled 0.8 percent.
By the end of day, Tuesday, it appears that Verizon and Cisco saw the biggest gains on the Dow Jones. Actually, Verizon has been garnering support throughout its 200-day moving average, towards consolidation, now up 2.6 percent. In addition, Cisco also registered gains of almost 2 percent, with the communications network giant also picked up momentum through its 50-day moving average.
Indeed, by the end of the day, both stocks closed out near all-time highs with Cisco closing just 3 percent shy of its peak and Verizon about 6 percent short.
All this said, economists suggest that global stocks, in general, inched higher when it appeared that US President Donald Trump and Chinese leader Xi Jinping reached an agreement over trade and tariff measures at this year’s G20 meeting, in Japan. Surely, this contributed to the S&P 500 climbing 2,964 points to reach an all-time high, beating the previous record set on June 20.
However, new sanctions were mentioned on Tuesday, with the United States proposing new tariffs on $4 billion-worth of imported goods from the European Union. This fact coupled with concerns over slowing growth all over the world has surely lowered confidence throughout the global stock market, let alone the markets of the US.
On top of this, the gains made in June might encourage the Federal Reserve to implement a new interest rate cut at some point this year. Of course, the negotiations coming out of the G20 summit have offered, at least, a glimmer of hope.
And valuations are, in fact, on the rise, with investors and advisors alike, watching the market closely. The earnings forecast trend has consistently shown the S&P 500 moving upward, and it is now trading up 17 times its earnings (up from 16.3 times just one month ago).