The markets rose on Friday following more trade deal optimism as the Dow Jones Industrial Average gained over 300 points. The Dow and Nasdaq Composite are both poised to rise for an eighth straight week while the S&P 500 is looking to make it seven weekly gains in the past eight.
“I am a bit surprised the market has been able to maintain this upward trajectory at the level that it has,” said Daniel Deming, managing director at KKM Financial. “We had a little hiccup last week, but that was quickly priced out of the market. That tells me there is still money trying to seek a higher return, or at least take on more risk.”
In a press conference at the White House, U.S. President Donald Trump said he will be meeting with Chinese President Xi Jingping in Washington next week. The meeting comes as a U.S. trade delegation led by Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer were in in Beijing this week.
This week, investors have been feeding off news that President Trump is open to extending the 90-day trade truce that is set to expire on March 2. The softened stance by President Trump hasn’t surpirsed investors, but rather confirmed their notions.
“If there is a resolution, you’ve got a lot of market participants who are anticipating a big pop-up. That’s why we continue to see money into the equity market as well,” KKM Financial’s Deming said.