The 4 forces that drove the stock markets latest record.jpeg
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S&P 500 closed on a record level on Friday.
The measurement index rose during the week to reach its highest level since February
It has helped the last highest ever through news of commercial deals and the high price stakes.
The S& P 500 has achieved a new record in high closure for the first time in four months on Friday.
After you lost narrow records inside the day in a session on Thursday, the measurement index rose to 6187.68, its highest level since February.
Below where the main indexes stood at 4 pm EST, the conclusion on Friday:
Here are the four things that inspired the last rally to record high levels.
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Trump said China and the United States signed the framework trade agreement on Thursday.Reuters
The United States and China have put the final touches on a framework agreement that includes China’s approval of exports to rare ground minerals, while the United States will restore some high -tech exports to China.
President Donald Trump said that both countries signed the deal at an event at the White House on Thursday. The Chinese Ministry of Commerce confirmed the framework agreement and its details in a statement on Friday.
The deal is a batch of confidence for investors, who were looking for trade relations between the United States and China with concern since Trump threatened to impose a 145 % tariff on Chinese goods in April.
Trade Minister Howard Lootnick said the United States has 10 trade agreements with other countries on the road, with plans to finish the touches on these deals in the next few weeks.
“We will do the 10 best deals, and put them in the right category, after which these other countries will be delayed,” Lootnick told Bloomberg.
The markets breathed a sigh of relief this week after President Donald Trump announced a truce between Israel and Iran, which reduced fears that the Middle East conflict can leak into the region and disrupt oil flows that could escalate in the global economy.
The conflict between the two countries continued after Trump announced the ceasefire. But this announcement was sufficient to put out the worst investor fears – especially fears of disrupting oil supplies, which briefly increased the price of crude fears and participation about the hottest inflation.
Oil prices fell from their highest levels earlier this month. Brent crude, the international standard, traded about $ 67 a barrel on Friday, a 14 % decrease from its peak this month.
West Texas Intermediate crude was trading approximately $ 65 a barrel on Friday, a decrease of 12 % of its peak at the heat of the Israeli conflict.
Kent Nishimura/Getty Pictures
Investors grew more up about the possibility of interest rate discounts, especially after the last round of economic data and supportive comments from federal reserve officials.
Spending on consumers, which represents about two -thirds of economic growth, decreased by 0.1 % in May, the first time spending has decreased since the beginning of the year.
Meanwhile, PCE enlargement, the preferred scale of the Federal Reserve for Price Growth, increased by 0.1 % in May to an annual rate of 2.3 %. Both numbers are in line with the expectations of economists, giving the markets to believe that the central bank has room to alleviate its policy.
Investors believe that the Federal Reserve’s opportunity by 27 % can reduce prices a quarter of another point in the policy meeting in July, according to the CME Fedwatch tool, an increase of 12.5 % last week, and fails to withdraw discounts in 2025.
While the President of the Federal Reserve Powell indicated that he is not in a hurry to reduce monetary policy while the inflation path is still inaccurate, the possibilities of lowering an imminent rate were strengthened through comments from senior Federal Reserve officials who say the discounts in July will be justified.
Trump continued his campaign to press against Powell to reduce this week. In a post on the social truth, the Federal Reserve Chair called “a very stupid, difficult” and “very late” in a post on the social truth.
Meanwhile, the president can announce the new Federal Reserve Chair as soon as September, and the sources of the Wall Street Journal. This will be far from the end of the Powell state in May. On Thursday, the market took a sign of more moves in the upcoming interest rates, as the treasury decreased in the treasury and the dollar decreased.
NVIDIA shares have reached the highest new level ever this week.I-Hwa Cheng/AFP via Getty Images
The artificial intelligence trade remains alive and healthy in the United States, another factor that takes optional.
NASDAQ has achieved 100 new records this week, and NVIDIA rose to the highest level ever, raising the shares by 64 % of its lowest level in March.
“Since the beginning of the current bull market during October 2022, we have recommended overweight in the S&P 500 information technology sector, and we have been especially positive in the S&P 500” semiconductor industry. “
There are still a lot of uncertainty that revolve around the future of stocks. Investors are not sure of the fragility of the ceasefire between Israel and Iran, and there are still uncertainty about the impact of definitions.
“While it is very encouraging to see stocks near record levels, there are many questions about the next catalyst necessary to push the shares more than here,” said Paul Stanley, the chief investment official of Granite Bay Wealth Management, in a note. “Although the assessments are high, it is important that you are aware of any processes and publish the new capital in an opportunist, instead of chasing short -term gains,” he added.
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