WASHINGTON, D.C. – The Stock market continues to soar amid so much uncertainty, slow growth, and gloomy forecasts.
All three of the biggest stock market indexes in the US just hit the record level highs during the start of the week. Because of strong corporate earnings, continued trade optimism, and strong corporate earnings, major US stock market indexes, S&P 500, Nasdaq, and Dow Jones Industrial Average, hit the all-time highs.
With the new record level hit, US President, Donald Trump, posted on Twitter to celebrate. The president boasted about the new record high that the stock market was able to hit, and continued by telling everyone to spend their money well.
However, despite the all-time highs for the stock market, there are some obstacles at play. Opposite of the president’s enthusiasm is a continued gloomy forecast. Global growth is still slowing down, and a lot of uncertainty still rules the global landscape.
But, it doesn’t take a lot to spur investors. According to Wilbur Ross, US Commerce Secretary, the talks between the US and China is in its first phase. The statement was vague and didn’t say anything about the trade talks being final. Also, this isn’t the first time such a statement was heard by investors from both the US administration and the Chinese. But, even that small positivity seems to help the markets soar around the world.
On the other hand, uncertainty is considered as one of the major forces that affect global economics. With the issues between the US and China as well as a slowing global economy, such uncertainty is to be expected.
Europe is struggling, and China just recently announced its lowest quarterly growth after 26 years. According to Brett House, the deputy chief of the Bank of Nova Scotia, one of the factors weighing down the global economic growth is the erratic policy that the White House is trying to impose. He also said that even the smallest steps to help remove any of the uncertainty would significantly help drive up the stocks.
Since Trump won as President, both the S&P and Dow have made significant gains. It has been one of the longest fights in history. However, the notorious gains the two made just leveled off after two years. Early in October, S&P still stood quite nearly to where it had been back in January 2018.
Although the recent highs that these three major stock market indexes in the US broken the record, there still seems to be lacking in gaining momentum in terms of optimism.