The markets rose for a second day following trade deal optimism as the Dow Jones Industrial Average gained 88 points while the S&P 500 rose 0.3 percent and the Nasdaq Composite went 0.2 percent higher.
Investors fed off the news that U.S. President Donald Trump is open to extending the 90-day trade truce that is set to expire on March 2. The softened stance by President Trump didn’t necessarily surprise investors, but rather confirmed their notions.
“Markets always assumed the March 1 trade deadline was flexible, but this just confirmed it,” Tom Essaye, founder of The Sevens Report, wrote in a note. “Bottom line, the fundamentals are roughly balanced right now as there is optimism that a trade deal will get done.”
“Looking ahead, a trade deal could reduce concerns about growth and allow the 2019 rally to continue,” Essaye added.
S&P 500 Makes Bullish Move
In the meantime, bullishness could be looming for stocks as the S&P 500 crossed a key technical indicator, moving past its 200-day moving average–something not seen since December 3. The S&P 500 was down 6.2 percent to end 2018, but it has since recovered after U.S. equities were roiled by volatility to close the year.