On the Resolution of China and NAFTA Trade Talks US Stock See Next Leg North
$DIA, $SPY, $QQQ, $RUTX, $VXX
Thursday, Wharton School finance professor Jeremy Siegel advised savvy investors that the current Bull market could extend as much as 10% higher if the US were to settle its trade dust-up with China and reach a new North American Free Trade Agreement.
“The next few months are going to be a challenge,” Professor Siegel said.
“But if we can get China and NAFTA settled, I see a 10% pop in the market because I think that’s the kind of 800-pound gorilla keeping a lid on prices now.”
The United States and China escalated their trade disputes Thursday, implementing punitive 25% tariffs on $16-B worth of each other’s goods, even as mid-level officials from both sides resumed talks in Washington.
The world’s 2 largest economies have now slapped tit-for-tat tariffs on a combined $100-B of products since early July, with more coming, adding to risks to global economic growth.
China’s Commerce Ministry said Washington was “remaining obstinate” by implementing the latest tariffs, which kicked in on both sides as scheduled at 12:01a EDT/0401 GMT.
The tariffs, scheduled several weeks ago, did not interfere with the start of a 2nd day of trade talks in Washington led by Chinese Commerce Vice Minister Wang Shouwen and David Malpass, the US Treasury under secretary for international affairs.
The head of Mexico’s biggest business chamber expects Key advances in NAFTA talks with the US in the next few days. Canada is on hold, but we here at HeffX-LTN expect Canada to align with President Trump’s trade policies.
Thursday, the major US stock market indexes finished at: DJIA -76.62 at 25656.98, NAS Comp -10.64 at 7878.48, S&P 500 -4.84 at 2856.72
Volume: Trade on the NYSE came in light at 621-M/shares exchanged, it is August!
- NAS Comp +14.1% YTD
- Russell 2000 +11.8% YTD
- S&P 500 +6.9% YTD
- DJIA +3.8% YTD
HeffX-LTN’s Major US Stocks Market Indexes Technical Analysis