Here at The Australian Tribune, we get frustrated at the mainstream media’s constant agenda to spin anything that has to do with the current leader of the free world — US President Donald Trump.
The media’s flavour of the last few months has been the future course of action for US-China relations once this 90-day truce has ceased.
We’re confident positive progress is being made, but the likes of the wider press insist it will all end in disaster.
But one thing we all do tend to agree on is that whatever the outcome, the US stock market is bound to be affected in some way.
And it appears, according to RAW, we weren’t wrong to believe this, with a newly published report saying that US stocks have advanced, with the consideration lifting tariffs on Chinese imports lifted investor sentiment.
Stock climbs everywhere
The Wall Street Journal reported on Thursday that US Treasury Secretary Steven Mnuchin is the one who put forth the idea of lifting some or all tariffs on Chinese imports, and even a tariff rollback, while trade discussions are held this month.
What followed was a spike in share prices across multiple stock markets.
The S&P 500 saw a 0.5% spike, a gain of 16.03 points, right after a concerning 1% drop after Morgan Stanley reported a lower-than-expected quarterly profit.
The Dow Jones surged by 127.84 points, or 0.53%. The NASDAQ saw a 0.56% rise with an additional 39.75 points.
Industrial stocks jumped up 1.4%. This sector is highly sensitive to trade developments, so a climb upward likely reveals a positive road ahead for these ongoing trade tensions.
Netflix Inc shares are up 0.3%, proving their move last week to increase US subscription rates are in fact working in their favour, despite what some economists were thinking.
Even Apple Inc, who have in the past shown their weariness over weaker sales in China, saw their shares increase by 0.5%.
It really looks like a surge of positivity.
Paving the way for a positive stock market road ahead
These impressive figures on Thursday set the financial index on the path to seven straight sessions of gains.
The S&P is still 10.5% away from its September 2018 high. However, we should note that the index has regained its footing after the 20-month low hit on Christmas Eve last year, due to concerns of a slowdown of the global economy.
Such a clawback points to a change in belief to a more positive sentiment regarding the future of global trade. And this is strengthened by the fact that no new lows were posted by the S&P.
As for the NYSE, advancing issues — stocks that advanced in price — outnumbered declining issues, resulting in a ratio of 1.54 to one. For NASDAQ, the advance-decline ratio was 1.34 to one.
It’s funny what a bit of faith can do to a stock market. And it’ll be interesting to see how the mainstream media’s attempts to take this faith away.
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