Stock rally picks up steam as trade hopes fly – News-Daily.com

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The Dow and broader stock market were rallying again on Friday as US President Donald Trump and Chinese Vice Premier Liu He were due to hold trade talks in Washington.

The Trump-Liu meeting is spurring hopes for at least a partial trade deal between the world’s two largest economies. The most recent round of talks between the countries took place in Washington this week.

President Donald Trump said in a tweet “good things are happening” at the trade meetings and that “all would like to see something significant happen.”

In response, stocks are sharply higher across the board.

The Dow soared more than 400 points, or 1.5%. The S&P 500 was up 1.6%, while the Nasdaq Composite traded 1.8% higher.

All three indexes are on track for a gain this week, which would be the first in three weeks for the Dow and the S&P 500.

But if anything has been learned throughout the US-China trade negotiations, it’s that a tweet or a new headline can change sentiment at the drop of a hat.

“Everyone is kind of narrowing in on this idea that we will get a smaller, partial deal — a phase one deal, if you will — and the worry about the trickier bits later,” said Michael Arone, chief investment strategist at State Street Global Advisors.

“Investors always overreact and then they adjust relative to the details. That’s what we’re seeing here,” Arone added.

Some economic data that could have derailed Friday’s rally was University of Michigan consumer sentiment, which over the past months showed growing concerns about trade tensions.

But the survey-based index beat expectations, with the negative impact of trade policies weighing on consumers’ minds a little less.

“Importantly, the impeachment inquiry has not had a significant negative impact on economic prospect,” said Richard Curtin, chief economists of the survey of consumers.

Geopolitical tensions in the oil-rich region pushed prices higher on Friday, but have come off their highs. US oil prices are up 0.9% at $54.02 a barrel, while the international benchmark, Brent crude, is up 1.6% at $60.04 a barrel.

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