Stock Market Futures Surge after Trumps Softens His Tough Stand on China

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by Verolian Opiyo · 3 min read
Stock Market Futures Surge after Trumps Softens His Tough Stand on China
Photo: Gage Skidmore / Flickr

The latest tweets by President Trump may set the pace for active support in the stock market this week. S&P 500 openned higher on Sunday.

There are no hopes that the struggling U.S. Stock Market will get better anytime soon. However, a new Twitter feed by Donald Trump was flooded by a positive conversation concerning the trade conflict and Sunday’s progress with China.

An optimistic Trump could be exactly what the doctor prescribed for crushed markets, placing the wind at the S&P 500’s back next week. By Sunday evening, the U.S. stock future opened higher than it could be expected.

Trump Backs off

It has been all modification from the administration of the United States immediately after markets analysis on Wednesday. The postponing of tariffs, together with these recent tweets, could certainly influence the market that has demonstrated impressively flexible over the past few days.

The S&P is still stable beyond the 200-day general average, creating a transparent line of help on the daily chart.

‘No Recession’ Is Coming

Larry Kudlow, one of President`s Trump`s senior economic advisers, assured investors on Sunday via a national television that everything is going well, and there is no need to worry that a recession was warming up to attack the U.S.

“There’s no recession coming… the pessimists are wrong. It’s not going to happen. We’re doing pretty darn well in my judgment. Let’s not be afraid of optimism,” said he.

Nevertheless, it’s worth mentioning that some people, including the TV host, were fast to reboost Kudlow memory of his similar statement just prior to the recession of 2008; however, in this case, his confidence may have real grounds.

The President has been always planning to introduce some modifications in its policy while making it milder, acquire some trade deals with rival China, and make the S&P 500 loose by next year.

S&P 500 by the Next Year

In the absence of the trade conflict, there is no doubt that the U.S. stock market is perhaps the most attractive location to hold equities. With the economy of Germany moving into recession, probably leading the remaining Eurozone with it, there is undoubtedly the minimal case for returning into the Euro properties. President Trump understands this, and it places a floor below the S&P 500 that enables him to aggressively hold dialogues with China without igniting the downfall it perhaps would in any other country.

The President has often utilized the S&P as a measure to address issues with China and structure his policy. The stock market bull may enjoy their restored confidence due to the market-friendly moods of the President.

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