The benchmark S&P 500 capped the longest rally since February 2018, closing at another six-month high, after fluctuating through most of the session. The Dow Jones Industrial Average also finished at the highest since October, led by gains in Boeing. Tesla’s record decline in first-quarter deliveries weighed on the Nasdaq. President Donald Trump said after the close of regular U.S. trading that a deal to end the trade war between the U.S. and China isn’t yet ready but a “very monumental” agreement may be announced in about a month.
“There could be a sell-off when the trade deal is done, and maybe some disappointment,” Kevin Divney, Russell Investments senior portfolio manager, said on Bloomberg TV. “But I also think that longer-term, when companies start to digest this and we hear corporate planning, that will be the real catalyst going forward.”
The trade deal being crafted would give Beijing until 2025 to meet commitments on commodity purchases and allow American companies to wholly own enterprises in the Asian nation, three people familiar with the talks said earlier.
Chinese Vice Premier Liu He met with Trump after two days of talks between Chinese and American trade negotiators. Trump didn’t announce a summit with Chinese President Xi Jinping to finish the deal.
“The message of the day is it’s more a matter of when and not if,” Burns McKinney, a portfolio manager at Allianz Global Investors, said in an interview at Bloomberg’s New York headquarters. “It’s very clear that everything that’s gone on here politically, the president needs a policy win so badly, wants a policy win so badly. He wants to point to something.”
Brent crude oil rose above $70 a barrel in London for the first time since November amid signs global inventories are tightening and expectations of new sanctions on