Sunday , May 16 2021

Dow Rockets Toward Record After US & China Broker Last-Minute Trade Deal, Crypto Coins News


  • The Dow Jones soared back toward record highs after the US and China reached a “phase one” trade deal.
  • Boeing (BA) stock heavily weighed on the Dow after China expressed concerns about the Max Jet.
  • Goldman Sachs remains optimistic for (************************************************, forecasting a low chance of a stock market-rocking recession.

Following a midday hiccup, the Dow Jones rocketed back in late afternoon trading to approach the record high it set earlier in the day.

The catalyst for the recovery wasBloomberg’s report that the US and China had reached an agreement in principle on the “phase one” trade dealthat investors have been waiting on since October.

The Dow’s rally was slightly hampered by weakness in both Apple (AAPL) and Boeing (BA) stock.

Dow Jones Whips Back Toward Record Highs

All three of themajor US stock market indicesheaded higher in the minutes before the closing bell,confident that Trump would approve the dealnegotiators had brokered.

Shortly before the close, the Dow Jones Industrial Average had gainedpoints or 0. (%, lifting the index to) ,. The S&P 728 and Nasdaq also bounced, rising 0. (% and 0.) **********************************************************************%, respectively.

************** A volatile Dow spiked back toward record highs on Thursday afternoon. | Source:Yahoo Finance

Unsurprisinglythe price of gold turned south as the stock market rallied, while crude oil bounced strongly on the brighter outlook for global growth. US economic data was generally negative, as jobless claims missed and producer inflation remained subdued.

Some of the positive reaction fromJerome Powell’s dovish FOMC press conference on Wednesdaymay have also helped to provide some fundamental support to the stock market.

The Dow Jones will be closed bythe time the UK election results are clear. Still, there could be plenty of volatility seeping into futures markets overnight if further political deadlock (or even a Labor victory) occurs.

Trump Pumps the Dow – and Negotiators Deliver

Donald Trump proved he still has what it takes to move the Dow, ashe managed to boost equitieswith yet another “the trade deal is close” tweet.

Source:Twitter) For once, though, White House negotiations negotiators delivered on that promise, striking an agreement in principle with the Chinese trade team. The details of the deal have not been released, and the handshake agreement still requires the president’s approval.

Goldman Sachs Optimistic for the US Economy in 2020

With a tremendous amount of worry in the marketplace, one of the United States’ most significant investment banks believes that risks to the stock market are overblown.

In a December update on the (outlook for the US economy, Goldman Sachs forecasts just a% probability of recession versus the consensus (% expectation:

Goldman Sachs Research forecasts steady US GDP growth of 2.3%, driven by easier financial condit ions, dissipating trade tensions, and continued strength in consumer spending. As the US economy continues its longest expansion on record, many market participants continue to worry about recession. However, our economists forecast just a (****************************************************************************% chance of a US recession in the next months, compared with the consensus view of 33%.

Dow **********************************************************************: Boeing & Apple Spoil the Party

The (Dow) exploded higher on Thursday

, but after touching record highs, things went slightly south for the index.

Impressive moves in financial giants Goldman Sachs and JPMorgan Chase helped lift the index as Treasury yields surged . Unfortunately, Boeing (BA) and Apple (AAPL) stock detracted from an otherwise-blockbuster day.

As the Dow’s most heavily weighted stock, Boeing’s performance is crucial. Down around 1. (**************************************************************%, BA continues to be battered by a series of negative headlines, with today’s problems stemming from China.

On this occasion, Boeing was not facing a harmful trade war headline but rather reports thatChinese regulatory officials are concerned about some of the changes being made to the infamous (Max jet) .

Given that BA stock is padded with a slew of orders from several different Chinese companies

, this is hitting Boeing investors where it hurts.

Another of the Dow Jones’ most essential stocks, Apple, was also struggling. Down 0.1% even after the trade deal report, AAPL was contending with analysis from Credit Suissethat suggested iPhone shipments were down (************************************************************************% in China. Given that markets are priced for little damage from the trade war, this is a rare sign of lagging demand for the tech giant.

****************************** (This article was edited by

************************ Josiah Wilmoth

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