S&P 500 sets an intraday record as the U.S. stocks climbed based on the speculations that the trade talks between Donald Trump’s Government and Beijing would reduce trade tensions. After Trump’s long standing lawyer pleaded guilty to the charges levied on him, the Yen and the Treasuries suffered losses.
Michael D. Cohen, Trump’s lawyer, pleaded guilty to the Federal charges saying that he was forced to violate the campaign laws by a Federal office candidate. The news was confirmed after the markets closed in New York. Trump’s former election campaign chairman was also found guilty of tax fraud, among other charges, which are yet to be heard. This news was confirmed after the regular session closed. This led the investors to favor haven assets for a brief period of time.
Earlier in the day, S&P 500 Index saw gains for a fourth day in a row, its highest since this January, while quite a few small caps climbed to an all time-high. However, the dollar continues to slide ahead of the minor trade talks with China. For the first time in the last three sessions, the 10-year Treasury yield climbed in wake of the Central Banker’s Meeting to be held later this week.
According to Max Gokhman, head of asset allocation for Pacific Life Fund Advisors, which manages $40 billion, “This is an abnormally sentiment-driven market that we’ve had all year, so a new high could cause on the margin some investors to either get nervous or to get bullish,” he continued, “I would argue probably more nervousness than bullishness at this point because we’re hitting a new high amidst failing trade talks with China, amidst peaking margins,” Bloomberg reports.
U.S shares have seen a rise on Tuesday as the investors showed a positive sentiment on the low-level trade talks that are going to be held between the American and the Chinese trade reps later this week. Market speculates that the meeting may at least take some heat off the months long trade spat.