(National Sentinel) Winning: As preliminary reports surfaced Monday morning that the U.S. and Mexico had reached a preliminary agreement on a new NAFTA agreement, Wall Street responded with massive gains as the Nasdaq hit 8,000 for the first time ever.
The composite climbed 0.6 percent on the news, as the Dow Jones climbed more than 200 points and the S&P 500 rose 0.6 percent as well.
In addition, the markets were reacting positively to reassuring news from Federal Reserve Chair Jerome Powell regarding future rate hikes, which POTUS Donald Trump has criticized as reversing economic gains from tax cuts and regulatory reform.
“The market has been buffeted with a lot of headwinds lately, and the biggest one is trade,” Art Hogan, chief market strategist at B. Riley FBR, told CNBC. “If you were to take trade out of the picture, you would have a smoother ride higher in this market.”
He was referring to the president’s tariffs which have hit some industries harder than others. But at the same time, economists who are being honest with Americans have credited them for bringing ‘reluctant’ countries to the bargaining table — something that didn’t happen with past administrations because there was never any threat of shutting off portions of the world’s biggest consumer market.
That said, a new NAFTA deal with Mexico — and can one with Canada be far behind? — is having a positive impact on U.S. markets because a new deal will have a positive impact on the U.S. economy.
A formal announcement on a deal is expected later today, according to a Mexican official, per CNBC.