Stocks are at record highs... but here's the thing: neither corporate earnings nor economic data has yet to corroborate this rally.
The mood on Wall Street is decidedly bullish, as investors watched the benchmark S&P 500 index notch its fourth consecutive record close on Friday amid rising optimism that the U.S. and China are headed toward an agreement that could ease tensions over trade and create much needed certainty for U.S. corporations as they plan for 2020 and beyond.
Since October 3 through Friday’s close, the S&P 500 SPX, +0.77% has risen 7.2%, the Dow Jones Industrial DJIA, +0.80% as advanced 7.4% and the Nasdaq Composite index COMP, +0.73% has gained 9.7%. “The U.S. economy is not falling on a cliff, but the domestic economy is continuing to slow,” Lydia Boussour, senior U.S. economist at Oxford Economics, told MarketWatch. She expects GDP growth to decline from 2.3% this year to 1.6% in 2020, with growth held down by continued weakness in business investment and a U.S. consumer that will remain healthy, but whose situation will cease improving as job growth slows.
Global growth to bottom out, but not rebound American companies shouldn’t count on a rebound in growth abroad either to boost earnings. Boussour predicts global economic growth will come in at 2.5% in 2020, the same rate as in 2019, and down from 3.2% growth in 2018, with growth in China slowing from 6.1% to 5.7%, as the world’s second-largest economy contends with higher trade barriers and its ongoing effort to reduce economy-wide debt loads.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
S&P 500, Dow eye record highs at open on trade deal hopes, solid earningsThe S&P 500 and Dow Jones indexes were set to hit fresh record highs at the open...
Baca lebih lajut »
Stock market today: S&P 500, Dow, Nasdaq post record highs - Business InsiderThe Dow Jones Industrial Average, S&P 500 index, and Nasdaq composite all rose during US trading on Friday.
Baca lebih lajut »
Stocks end week of milestones at new highs; Dow tops 28,000Healthcare and technology stocks powered most of the broad rally, which helped drive the S&P 500 to its sixth straight weekly gain.
Baca lebih lajut »
After Dow tops 28,000, the next 1,000 points will be determined by trade talksStocks bounced on trade headlines on Friday, but the market could stall out in the week ahead if there is no real progress towards a deal.
Baca lebih lajut »
Dow hits 28,000 for the first timeThe Dow just climbed above 28,000 points for the first time in history. All three major US stock indexes closed at record highs, ending yet another week in the green.
Baca lebih lajut »
The Dow nears 28,000 as stocks rallyUS stocks are rallying Friday as the Dow is zeroes in on breaking through 28,000 points for the first time in history.
Baca lebih lajut »