- Strong economic data and positive trade talk helped lift the Dow on Friday.
- Trump is still confident that a deal with China is possible, but economists are less convinced.
- One forecaster believes the stock market could drop 10% immediately if Trump doesn’t deliver the promised trade deal.
The Dow Jones rallied on Friday as more encouraging trade dialogue dovetailed with strong economic data.
Unfortunately for stock market bulls, many analysts still don’t believe Trump will be able to deliver on his trade deal promise. One researcher anticipates a monster sell-off if trade negotiations break down again.
Dow Jones Rallies as Consumer Sentiment Brightens
Of the three major US stock market indices, the Dow Jones Industrial Average was the top performer. The Dow rose 107.31 points or 0.39% to 27,873.6, while the Nasdaq and S&P 500 barely crept into positive territory.
Crude oil slipped as the US dollar rose, while the price of gold moved sideways to close the week.
There was a barrage of high-profile economic data in Europe. German GDP beat forecasts, Eurozone PMIs were mixed, and UK data was even more miserable than usual.
In the United States, there was better news for the Dow, as vital consumer sentiment data showed that the critical engine of US growth remains intact. Adding to this, some better-than-anticipated PMI data confirmed the resilience of the domestic economy.
Trump Is Running Out of Time to Make a Trade Deal Before December
Given how often stocks have rallied on the same tired but ultimately fruitless trade headlines, it is natural that market sensitivity to this fundamental has dulled.
Impeachment proceedings are crawling toward their endgame in the House. Nothing has altered the majority opinion that Trump may well be impeached – but will not be removed from office.
With the holiday season fast…