NEW YORK, Dec 14, 2019 (BSS/AFP) – Wall Street was largely unmoved by the
long-awaited US-China trade deal unveiled on Friday, which marked the end to
the steady escalation in the dispute after nearly two years.
Two major stock indices notched fresh records and all three banked gains
for the week but trading activity overall was muted.
Washington and Beijing announced a partial agreement averts the new
tariffs on Chinese goods set to hit on Sunday, while addressing some major US
grievances about Chinese trade practices.
The benchmark Dow Jones Industrial Average finished in positive territory
by a hair, closing essentially flat at 28,135.38
The broader S&P 500 was also essentially flat at 3,168.80, eking out a
fresh record close, while the tech-heavy Nasdaq gained 0.2 percent to close
at 8,734.88, also a new all-time high.
On the global scene, uncertainty also declined the day after Britain’s
Conservatives won a commanding majority in parliament, giving Prime Minister
Boris Johnson the political backing to proceed with Brexit next month.
Stocks had rallied Thursday in anticipation of the trade deal with China,
but then declined when the pact was announced.
“You got a pretty good example of ‘buy the rumors and sell the news,'” Art
Hogan of National Holdings, referencing the saying indicating equities rise
more in anticipation of an event than after the event itself.
“But it’s certainly great news on Brexit and US-China trade war.”
Trade economists cheered the fact the deal pulled back from the brink, but
did not see much progress after many months of pain for American businesses
and farmers.