Eagerly awaited news has been announced today, the US Stock Market welcomed its participants back with a big jump in prices. The S&P 500 was up 2.1% and the Dow Jones soared 1.7%, the NASDAQ gained 2.9%, as investors cheered cheering strong corporate earnings and potential progress in Beijing-Washington trade talks. It had been speculated that the recent US-China trade tensions had caused volatility in global markets and pessimism in economic outlooks, yet the news of the US stock market’s impressive performance today suggests otherwise.
Ultimately, the rise of the markets was driven by robust corporate earnings and outlooks. Many US firms have reported record-high profits and are expecting excellent growth over the next few quarters. Microsoft, for example, reported a jump in its financial results, reporting a 14% increase in revenue from a year earlier. Boeing also reported strong numbers, with its orders for aircraft increasing significantly in the fourth quarter. Altogether, these companies make up a huge part of the US-Stock Market, with their successes prompting investors to jump back in.
The news of the strong performance of these firms was further buoyed by possible progress in the trade negotiations between Beijing and Washington. This week, Chinese Vice Premier Liu He met with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington, hinting that both sides are close to finalizing a deal on trade. These talks have been ongoing for the previous two years, so the news of potential progress is a welcome development.
Analysts have warned that the US stock market’s current recovery could be volatile and will take some time to fully recover. This is understandable, as the US and Chinese trade talks could still break down and there are concerns that the quarterly corporate earnings forecasts are not sustainable. Despite this, the positive performance seen today implies that investors have faith that the US economy will continue to grow.
Overall, the US stock market’s welcome return today showed that despite the economic uncertainty that has been created by the trade tensions between the US and China, companies are continuing to have record-high profits and are expecting strong growth in the future. This suggests that investors are confident that the US economy will continue to grow – at least in the short term.
Eagerly awaited news has been announced today, the US Stock Market welcomed its participants back with a big jump in prices. The S&P 500 was up 2.1% and the Dow Jones soared 1.7%, the NASDAQ gained 2.9%, as investors cheered cheering strong corporate earnings and potential progress in Beijing-Washington trade talks. It had been speculated that the recent US-China trade tensions had caused volatility in global markets and pessimism in economic outlooks, yet the news of the US stock market’s impressive performance today suggests otherwise.
Ultimately, the rise of the markets was driven by robust corporate earnings and outlooks. Many US firms have reported record-high profits and are expecting excellent growth over the next few quarters. Microsoft, for example, reported a jump in its financial results, reporting a 14% increase in revenue from a year earlier. Boeing also reported strong numbers, with its orders for aircraft increasing significantly in the fourth quarter. Altogether, these companies make up a huge part of the US-Stock Market, with their successes prompting investors to jump back in.
The news of the strong performance of these firms was further buoyed by possible progress in the trade negotiations between Beijing and Washington. This week, Chinese Vice Premier Liu He met with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington, hinting that both sides are close to finalizing a deal on trade. These talks have been ongoing for the previous two years, so the news of potential progress is a welcome development.
Analysts have warned that the US stock market’s current recovery could be volatile and will take some time to fully recover. This is understandable, as the US and Chinese trade talks could still break down and there are concerns that the quarterly corporate earnings forecasts are not sustainable. Despite this, the positive performance seen today implies that investors have faith that the US economy will continue to grow.
Overall, the US stock market’s welcome return today showed that despite the economic uncertainty that has been created by the trade tensions between the US and China, companies are continuing to have record-high profits and are expecting strong growth in the future. This suggests that investors are confident that the US economy will continue to grow – at least in the short term.
