Stocks Soar - Trump Will Likely Sign Off on Budget Compromise
Dow Jones rallied 350 points during mid-day trading on optimism that President Trump will sign the proposed legislative bipartisan compromise that would prevent another partial U.S. government shutdown.
The enthusiastic rally on Wall Street may also be credited to over-optimism that President Trump will provide an extension of the March 1, 2019 deadline he had imposed on negotiating a deal to end the Chinese US trade war amid reports that he and President Xi would likely meet in mid March at the President’s Mar-a-Lago resort to finalize a new trade deal.
By James DiGeorgia
U.S. stocks were in rally mode today with the Dow Jones Industrial Average climbing as high as 350 points after news reports indicated that President Trump was likely to sign off on a bipartisan deal to prevent a government shutdown.
Also, optimism was expressed by the Trump Administration that President Xi and President Trump would likely meet face to face to finalize a trade deal between the U.S. and China that would end the ongoing trade war.
The tentative agreement, which involves 55 miles of new border fencing, still requires approval from Trump, who reportedly is not “thrilled” but stopped short of saying he will reject it.
“There is at the very least a relief rally today over the news that
Washington may be on the verge of preventing another partial government
shutdown; and news that President Trump may be on the cusp of making a deal
with China that would put an end to the Chinese US trade war that had helped
send stocks tumbling to their worst performance in decades in December.
“The S&P 500 has risen to the key 2,735 resistance level; a breakthrough this level could serve as enough of a move to send the stock averages back to their previous highs.”