Wall Street Rallies Into New Year Boosted by Positive Market Sentiment
Arslan Butt • 1 min read
US equities continued their bullish run from 2019 into the new year, touching record highs once again in the previous session. Positive sentiment in the market over the upcoming signing of the phase one trade deal, fresh economic stimulus rolled out by China and a more upbeat general outlook about the global economy pushed Wall Street to close higher on Thursday.
SPX soared to record highs for the 11th time in 14 sessions, experiencing the highest daily gain in terms of percentage since three weeks. Meanwhile, DOW notched up its biggest daily gain in four weeks while Nasdaq saw the highest daily gain in almost three months.
Equity markets have started 2020 on a positive note ever since US President Donald Trump confirmed that the phase one trade deal will be signed by the US and China on January 15 at the White House. Trump also confirmed his plans to travel to Beijing after this to begin phase two of trade negotiations with China.
In addition, PBOC cut RRR rates infusing higher liquidity into the Chinese markets, lending another boost to the market sentiment. The higher liquidity should serve to boost economic growth in China, which has weakened to a near three decade low over the prolonged trade tensions iwth the US.
US stock markets also traded bullish on the back of positive economic data releases which revealed a decline in jobless claims in the US for the previous week.