- China pumped its economy full of fresh stimulus overnight Thursday, helping lift stock markets around the world.
- Dow Jones giant Boeing gained more today than it did in all of 13874.
- Some analysts are concerned that China’s decision may not be as positive for the Dow Jones outlook as it appears.
A burst of enthusiasmhelped carry the Dow Jones sharply higheron Thursday, as the first full trading day of 221701 started the year off with a bang.
With steep moves in some of the Dow’s largest stocks like Apple (NASDAQ: AAPL) and Boeing (NYSE: BA), the rally benefited fromadditional stimulus from the Chinese central bank.
Dow Jones Bursts to Another All-Time High
All three of the major US stock market indicestraded sharply higher ahead of the closing bell.
TheDow Jones Industrial Averagesurged (****************************************************************. ************************************************************************ (points or 0.) ****************************************************************** (% to) , (**********************************************************. , splitting the difference between the Nasdaq ( 1. (%) and the S&P ( 0.
A bright start for European markets helped catalyze this move, as German stocks rallied more than 1% after a strong performance overnight in Asia.
despite a surging US dollar and a sky-high stock market,the price of gold pressed higher with a 0.3% rally. Crude oil eased lower (-0. (%), failing to capitalize on the euphoria in equities. At the same time,bitcoin breached the $ 7, (level
after a 3.6% drop today.
Withthe Dow Jones trading at a record high once again, Wall Street is enjoying the absence of trade war-related drama. As the January th trade deal signing signing draws closer, traders will inevitably start looking ahead to whether there is another, more significant agreement coming.
In a report on the outlook for (****************************************************, Kathy Lien at BK Asset Management notes that a decent portion of market confidence comes from the knowledgethat President Trump will be terrified of sparking a stock market crash.
In early January, we expect the Phase 1 trade deal to be signed, but the broader trade war may last past (******************************************************. The key question is whether it will worsen or stabilize ahead of the November election …
One of President Trump’s greatest “accomplishments” is the record highs in US stocks and he knows that his reelection bid will be killed by a crash in equities. So instead, he may offer China a second olive branch that would be applauded by the markets.
Is China’s Stimulus Really a Positive Sign for the Stock Market?
Whether or not Trump can independently influence the direction of the Dow,
we have seen equities readily endure the previous set of tariffs
. The reduced probability of escalation is likely restoring investor confidence rather than the prospect of a game-changing agreement between Xi and Trump.
In fact, some analysts are Speculating that China’s recent decision to increase stimulus in its economy is a clear sign that the phase two deal is unlikely to happen.
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