- The Dow shot to a new all-time high within inches of 28,000.
- But as the White House pumps stocks, US economic data paint a murkier picture.
- One hedge fund billionaire is warning that the US-China trade war will spill open into another front.
The Dow Jones rallied once again on hopes of progress in the trade war, as Wilbur Ross and Larry Kudlow both suggested that a deal was getting very close.
Given that the stock market has rallied over and over again on similar news, it remains to be seen how durable this rally in the Dow will be as economic data continues to trend lower.
Meanwhile, prominent billionaire investor Ray Dalio is deeply concerned that a “lose-lose” outcome could emerge from deteriorating US-China relations.
Dow Jones Soars as White House Officials Pump Stocks
Minutes before the closing bell, the Dow Jones Industrial Average had exploded to gains of 193.11 points or 0.7%, lifting the index to 27,975.07.
Of the three major US stock market indices, the S&P 500 was the next best performer with a 0.57% rally, while the Nasdaq followed closely behind with a 0.53% advance.
Helping provide a boost to the Dow, a marked sell-off in the US dollar saw capital flowing into risk assets. The gold price was a victim of risk-on market conditions, losing 0.4%, while crude oil hit a 30-day high on the back of a 1.8% climb.
President Donald Trump is facing open impeachment hearings in Congress, prompting several tweetstorms in recent weeks. Sprinkled among these tweets are posts touting the stock market’s record run. This tactic is unsurprising given that economic prosperity remains the best indicator of Trump’s re-election in 2020.