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The Market Wrap For August 31st: A Big Boost From Trade

Aaron Levitt Aug 31, 2018

Investors received some good news this week. After what seems like months of deliberating, tariffs and wars of words, the first of the major trade disputes may be nearing an end.

The U.S. and Mexico struck a major deal on trade over the weekend. This has fueled speculation that Canada is willing to come back to the table and discuss trade. Investors were enthusiastic that NAFTA will not be scrapped and that the deal will only be strengthened. Traders were pleased and the markets rallied on the news.

On the back of that high was strong economic figures. Preliminary gross domestic product numbers came in much higher than expected as did plenty of other data points this week. This gave traders more ammunition to keep buying equities as there is still much more gas in the tank when it comes to the U.S. economy. We may still be in the early stages of the business cycle.

Finally, while the number of earnings reports have started to dwindle, several retailers reported this week and the numbers were great – this includes some record results. The strength of the consumers continues to provide extra fuel for the longest bull market in history.

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