S&P closes in to record high, as trade talk optimism again lifts Wall St.


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S&P closes in to record high, as trade talk optimism again lifts Wall St.

On Tuesday, the 18th of June 2019, all three key indexes of Wall Street mushroomed, while S&P appeared to be crawling towards another record high after a Trump’s tweet on trade talk with Beijing had reversed the market momentum and bossed up sentiments along with investors’ confidence.

Besides, a growing bet of a rate-cut later this year amid a bunch of baleful economic data had added to investors’ optimism. In point of fact, over the recent months, global stock markets had reacted spontaneously on Trump’s comment over the progress of trade talk with Beijing, and it had not been any exception on Tuesday’s (June 18th) market, as the trade-sensitive Dow climbed 1.35 percent to settle at 26,465.54, Nasdaq surged 1.39 percent to 7,953.88, while S&P gained just a notch shy of 1 percent to 2,917.75, well on-course to breach its all-time-high.

Apart from that, comments of ECB Chair Mario Draghi hinting the possibility of a negative interest rate for eurozone economy, had also boosted the stocks heavily exposed to EU trades. Adding that investors should remain cautious up to a G20 summit later this month at the Japanese city of Osaka, a chief investment strategist at Baker Avenue Asset Management in San Francisco, King Lip said, “We can’t discount how big a deal it is for China and the U.S. not to go into a prolonged trade spat. I don’t think we’re out of the woods yet, though”.