The S&P 500 index now recently blitzed through the recent highs established in the Non-Farm Payrolls (NFP) report. This breakout is an indication that the market is changing for the better. This increase occurs at a moment with unemployment claims near record low levels, indicating a tight labor market. The debate on how to settle the permanent China tariff stalemate is heating up. Investors have high expectations for the eventual results.
Recent conversations around the tariff issues were highlighted in a video that outlined strategies for client gains, both for swing and intraday trading. And boy was there movement in the market, as that video noted. It was signaling a positive open of more than 30 points in the E-mini S&P futures (ES) and 140 in the Nasdaq-100 (NDX). These increases are an indication of increased investor optimism as the tariffs are hopeful counting-down clock seems to be moving in their favor.
In other news, the U.S. dollar is now jacked back to that all important 100 level. This rebound is what’s mainly fueling the optimism surrounding capital financial markets. The contours of any possible trade deal with the United Kingdom are now evident. This financial framework offers Copenhagen and the Tour mutual benefits and opportunities. This new development is yet another reason to be hopeful about the current global trade environment.
As an example, former President Donald Trump recently tweeted that he supports an 80% tariff on China. This proclamation points to a hopeful trajectory for the negotiations ahead. These discussions of economic cooperation and collaboration are expected to happen in the week ahead, continuing to stoke the speculation about a changing tide in trade policy. An unprecedented gap in market activity is likely this Sunday as traders process these moves.
Notably amidst the positivity in the market was a brief “sell the news” response that followed Trump’s tweet. This reaction was analyzed and discussed with clients, reflecting a cautious approach amidst rising enthusiasm. In our last video, we journeyed down to the rabbit hole to discover how important financial instruments such as the S&P 500 (SPX), Bitcoin (BTC), and the U.S. dollar (USD) relate to one another. We applied “gold dots” to signify their important interconnections.