Monday allowed stocks to rally as a result of U.S President Donald Trump and other American officials promising comments regarding the state of the trade talks between the U.S. and China. Furthermore, during the weekend, China took action to decrease borrowing costs for companies. As a result, the S&P 500 index SPX, experienced an increase of 34.97 points, or 1.2%, and concluded the day at 2,923.65. This served as the second straight session of sharp gains for the index following Friday, where the index experienced an increase of 41.08 points, or 1.4%. According to Dow Jones Market Data, gains from Monday are the first uninterrupted 1% gains for the S&P following November 11th of last year.

It was announced on Monday that the U.S Commerce Department has allowed the Chinese company Huawei Technologies Co. Ltd. to have additional days to continue doing business with companies from America. Moreover, the department has also added 46 further affiliates of Huawei to the list which will be subject to approval following the 19th of November. This occurred one day after Trump minimized the worry about a recession from the statements which he disclosed to the press and after Larry Kudlow, his economic adviser, repeated these statements during his appearances on Sunday interview programs.

The economic adviser proceeded to forecast a powerful performance of the economy during the second-half of the year and informed Fox News back on Sunday that the government was looking at a tax cut of 10%, which will be beneficial to earners who are part of the middle-income groups. This was indicated by Trump in advance of the midterm elections of 2018.

Furthermore, Peter Navarro, the White House trade adviser stated that there is assurance that the U.S economy will experience a strong economy during 2020 and afterwards. This is as a result of the boost from huge economies and the largest trade deal ever in history. Navarro also claimed that the Fed will be lowering rates as an element in the worldwide boost in incentives.

Meanwhile, Connor Campbell, the market analyst at Spreadex, during the same day, stated in a note that market participants seem to acknowledge Trumps declaration that the country is doing tremendously well, right next to the presidents guarantee that Washington and China are proceeding to discuss matters regarding their trade.

By: Cyril Latrice Cajanding