- The Dow Jones rose Friday as Xi Jinping praised Trump’s phase one deal, but geopolitical tensions lurk behind the scenes.
- Another bounce now puts the stock market at record highs after the last full week of trade in 2019.
- Losses in Boeing (NYSE: BA) and Nike (NYSE: NKE) prevented the Dow from rallying further.
The Dow secured a triple-digit rally on Friday, fueled in part by Xi Jinping’s extremely-positive remarks about the US-China trade deal. With the USMCA now written into law, trade barriers are fading as a concern for the stock market.
Dow Jones Pushes Further into Record Territory After Xi Comments on Trump Deal
The Dow Jones Industrial Average climbed 136.49 points or 0.48% to strut at 28,513.45, as of 2:58 pm ET.
The S&P 500 surged 0.61%, and the Nasdaq’s 0.49% bounce tracked closely with the Dow’s move.
With the stock market booming, it was unsurprising to see the price of gold dipping just under 0.2% to close the week. Crude oil lost 1.4% as commodities came under pressure from a rally in the US dollar. After breaching the $7,000 handle, the price of bitcoin held steady amid optimism about the upcoming “halving” in 2020.
A significant catalyst for Friday’s rally in the Dow Jones came from an encouraging soundbite from Chinese President Xi Jinping following a phone call with US President Donald Trump.
While the White House has been a constant stream of optimistic statements for months, China has been considerably more coy on the outlook for the trade war.
Today, Xi publicly acknowledged that the US-China phase one deal was good for “the US, China, and the entire world.”
It was not all good news, though. The Chinese leader also expressed his concern about US involvement in controversial regions like Hong Kong and Taiwan.