Wall Street indexes hit record highs after sources confirm optimism about the US-China trade deal. The FAANG group of Stocks – Alphabet Inc, Facebook Inc, Apple Inc, Amazon.com Inc, and Netflix Inc are the biggest boost.
After a wobbly start of the new year with fears of conflict in the Middle East, nerves eased as Washington and Tehran defused the crisis after Iran’s attack. Further to the sentiment, the stock market rallied all-time highs after numerous reports and tweets from President Donald Trump confirmed a trade deal with China.
China’s commerce ministry said that Liu will sign a phase 1 trade deal in Washington next week which will ease the prolonged tariff war between the U.s. and China. With both sides negotiating the deal, Wall Street investors cheered the good news on Thursday morning.
Investors were anxiously waiting to see whether or not the president imposes additional tariffs. If no deal was struck before the deadline December 15, then both the countries could have threatened the stock market’s year-end run.
Wall Street indexes have climbed record highs with major indexes turning into strongest weekly gains since August 2019. The financial growth has seen its high after sealing the Phase 1 trade deal. iPhone sales went 18% high in China, Cowen Equity Research raised the price target on Twitter, Alphabet, and Facebook after US ad agencies showed upbeat spending in 2020.