The US stock market could be looking at another record-breaking day as Chinese officials have confirmed that Washington and Beijing are presently discussing the roll back of tariffs.
A spokesman representing the Chinese Ministry of Commerce recently told reporters that these rollbacks could come soon, even perhaps before the two companies sign a “phase one” trade deal. In October, the two countries agreed to a preliminary deal. Many strategists have been concerned that the market, overall, could be a little too focused on the “phase one” aspect of a deal, which has weighed heavily on market sentiment. Fortunately, it appears that the United States and China will, in fact, be signing a new deal within the next couple of weeks.
And with that, investor sentiment bounced back after several months of concern. Through the middle of the week, US markets were pretty much flat. This is largely a result of a report from Reuters which warned that the signing of this preliminary agreement might be delayed.
In all, then, the Dow Jones Industrial Average and the Standard & Poors 500 Indexes both opened with fresh intraday highs. In fact, the two hit new intraday records. The Dow reached up 210 points, or 0.8 percent while the much broader S&P gained 0.6 percent. Similarly, the Nasdaq Composite soared 0.7 percent, also hitting a trading record in just a half hour after the market opened.
The boosted index scores come as all industries hit gains. In fact, only four Dow Jones stocks were in the red on Thursday morning. On the other hand, the industrial and energy segments outperformed in the Standard & Poors. Analysts suspect, then, this could lead to all three major indexes closing at new record highs, on Thursday. Furthermore, this would mark the third record of week for both the Nasdaq Composite and the Dow Jones Industrial Average.