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US Market Wrap 28 August 2018

Posted by Billy Macris on 28-Aug-2018 10:03:19

US equities were again stronger overnight as a deal between US and Mexico was struck, potentially removing and an element of uncertainty in the markets. The deals comes about months of negotiations between the two countries and would be called the United States-Mexico Trade agreement leaving behind the original NAFTA name.   

As a result, all major indexes were higher with Dow Jones +1.01%, S&P 500 +0.77% and the NASDAQ +0.91%. Trade sensitive stocks reacted the most with the likes of Caterpillar and Boeing rising 2.8% and 1.3%, respectively helping contribute towards the Dow’s positive performance. Commenting on the trade deal that was announced, Matt Blunt president of American Automotive Policy Council commented that he was optimistic about the deal and as a result shares of Ford +3.2% and General Motors +4.8%.

Moving into the broader market, Financial and Technology stocks performed well as their respective sectors rose +1.34% and +0.97%. Some of the bigger movers include: Alphabet Inc. +1.58%, Twitter +4.07%, Morgan Stanley +3.63% and Goldman Sachs +3.19%.

In currency markets, the dollar fell after on Friday Federal Reserve Jerome Powell’s comments seemed to suggest a slower pace to monetary policy tightening. Overnight the trade deal with Mexico extended these losses whilst the Mexican Peso and Canadian dollar gained +0.8% and 0.5%, respectively.

Chart of the Day: Advanced Micro Devices (AMD) Daily Chart

amd

Topics: +U.S. Market Wrap