The good news kept coming this week for investors. After last week’s Federal Reserve-induced boost, investors were able to put another issue to rest. This week was all about trade. The U.S.-China trade spat has been plaguing the markets for months now and the latest deadline for increased tariffs is fast approaching. However, news broke this week that the two nations were quickly approaching a deal to prevent further tariffs and actually end the battle. Traders, over the course of the week, cheered the news.
This bullish picture on trade was supported by an equally bullish earnings picture. With earnings season in full swing, stocks have continued to beat on EPS gains. Also this week, the cautious outlook from many stocks was a bit tempered and not as bearish as before. Traders took that as a sign that the economy may not be slipping after all.
Meanwhile, data released on the week supported a still-growing economy. But it wasn’t too bullish in that the Fed will feel the need to raise rates further in the weeks ahead.
All in all, the week’s signs were all bullish, with the end of the trade war spurring further gains in the markets.
Be sure to check out our previous Wrap here, when the earnings season was in full swing.