President Trump’s Tough Talk Driving US Stock Market
$DIA, $SPY, $QQQ, $RUTX, $VXX
Fears of a trade war is giving boost to some of the smallest companies in the market as well as some of the biggest technology companies.
For over 3 months, investors have focused on US negotiations with trading partners including China, Europe, Canada and Mexico.
Most often in such a scenario has been Very Bearish for stocks when investors feared that increasing trade sanctions would disrupt the global economy and cut into corporate profits, and then rallied when Wall Street felt that negotiations would resolve the disputes with little to no economic harm.
That has contributed to a volatile stock market this year, after the calm of Y 2017.
This year we have seen big swings day to day, hour to hour, as investors and traders try to get a sense of what will happen with trade.
When the market has not been fast, it found comfort in strong corporate earnings and US economic growth.
As a result, the S&P 500 is up 3.9% YTD, and headed higher, the NAS Comp and Russell 2000 are at record highs, plus the DJIA is headed back to its record high territory.
Investors rightly conclude that small, US-focused companies are less vulnerable to tariffs than the multinationals, and that the US will have stronger economic growth than other countries in the months to come.
In fact, the US is the fasted growing economy in the world now.
Technology companies have made huge gains this year, helped by strong earnings and analysts’ view that businesses will continue to spend more money on technology in the years to come, ass investors feel tariffs are not a threat for tech companies.
Trade issues are in focus Friday as leaders from the G7 countries meet in Quebec, Canada, and investors see from President Trump’s tough talk that despite the drama, the main industrialized countries will align with the US as it is the indispensable country in the Group.
Friday, the major US major stock market indexes finished at: DJIA +75.12 at 25316.53, NAS Comp +10.44 at 7645.51, S&P 500 +8.66 at 2779.03
Volume: Trade in the NYSE came in at 779-M/shares exchanged
- NAS Comp +10.8% YTD
- Russell 2000 +8.9% YTD
- S&P 500 +3.9% YTD
- DJIA +2.4% YTD
HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 8 June 2018
America First & MAGA
Have a terrific weekend