On Tuesday, the 12th of February, Wall Street’s major three indexes posted gains, in a broadened rally, after US lawmakers had sealed a tentative deal to prevent another partial government shutdown. Adding further bullish bias, the investors appear to be getting poised over an agreement following the ongoing US-China trade talks.
Given US president Donald Trump’s comment that he did not want another government shutdown, the Wall St. started higher and remained upbeat during the US midday trading session. Before that, during the Asia-Pacific trading session, the global stock indexes posted heavy gains, alongside the European shares jumpstarted after US president’s announcement of reaching a sizeable deal on Mexican border wall funding, mostly led by the UK’s FTSE, which breached a four-month high on today’s (February 12th) market closure.
Looking ahead at the Wall St., the S&P 500 index had crossed its 200-day moving average for the first time since December 4th, 2018, a critical technical level which usually indicates a long-term momentum. The benchmark has now been just 7 percent away from its September 20th record closing, while the Dow Jones Industrial Averages were 1.52 percent up during preparation of this report (February 12th, GMT.
18.30). Concomitantly, the Nasdaq Composite had surged 1.32 percent so far to 7,404.27. Citing the tentative deal, that averted an upcoming federal govt. shutdown, as the biggest drive in Tuesday’s (February 12th) market, a portfolio manager with Hodges Funds in Dallas, Gary Bradshaw said, “The fact that lawmakers want to leave the government open sounds like one of the biggest drivers for markets today.
Investors like that fact that we are getting closer to trade issues improving. They are taking a risk-on stance, everyone is buying today. ”