S&P 500 recorded a new high yesterday closing in 3,022.55 after news came about United States president Donald Trump’s reported decision to end negotiations and sign a trade agreement with China. Financial Times reported that another cause for optimism is the expected Federal cut on interest rates.
The index closed 0.6% or at 3,039.4, higher than the 3,025.9 last July 26. Charlie Ripley, senior investment strategist at Alliaz, investor confidence surge after positive news came from the on-going trade talks between Washington and Beijing, the expected decision of the Federal Reserve to cut interest rates and upbeat earnings result.
However, many analysts still think that the global economy is still registering laggard performance across markets and this development in the United States will not be able to lift other markets up in a significant way.