Politics – or in this case, the lack of – continues to be a primary driver of the market’s overall returns. Last week, the market’s gyrations were driven by various revelations and investigations into the Trump administration’s dealings with Russia. This week, the news was more positive. As Trump began a worldwide tour meeting with other global leaders, the amount of “bad” press surrounding Trump and his team was limited. Market participants took that as a sign of relief. And as a result, the market rallied over the course of the trading sessions.
Helping drive those gains even further was positive data. Bullish speeches from the Fed as well as key economic data in housing, labor and industrial activity continued to push stocks higher through the week.
As for corporate profits, the winding down of the earnings season meant that most bellwethers had already reported. However, several retail names did show weaker-than-expected numbers. But with a lack of poor press on Trump this week, stocks didn’t seem to mind.
All in all, the week ended on a high.
Check out last week’s Market Wrap here.
Monday kicked things off on a positive note. After last week’s drop, traders viewed the decline as a buying opportunity. Investors quickly rushed back into equities and sold off safe-haven assets. Adding to the bullishness were the strong overall corporate earnings this quarter. And they could potentially could get even better. During his meeting in Saudi Arabia, Trump announced a new wave of investment from the Middle East nation. The estimated $300 billion in investments will go to a variety of firms across multiple sectors.