US stocks cheer on trade deal hopes

The Trump trade deal with the UK is igniting stocks with the major indices all up by over 1.4%.

The snapshot of the market currently shows:

• Dow industrial average is trading up 576 points or 1.40% at 41688.78.
• S&P index is up 78.23 points or 1.40% at 5709.
• NASDAQ index is trading up 317 points or 1.79% at 18053.90.

The major indices all closed higher yesterday snapping a 2-day decline to start the new trading week.

The NASDAQ index is now up 0.44% for the week while the S&P index is at a similar 0.42%. The Dow industrial average is leading the way with a gain of 0.93%.

The UK deal was somewhat low hanging fruit. Discussions with China this weekend in Switzerland will be more important as will trade deals with Europe, Canada, Mexico. China currently has tax at 145% which has stopped shipments into the US ports and that jobs at the docks and with truck drivers are at risk.

Trump said lower imports represented a $1.1 billion benefit to the US so a “slowdown is the good thing”..

This article was written by Greg Michalowski at www.forexlive.com.