U.S stocks surge as it opens on Monday, with three main indexes leading the pack. This was after “Trump trade” bounces back with a glimpse of hope for the economy amid protests against the new administration in many parts of the nation.
This was perhaps brought about by the optimism felt after the president expressed that in a few weeks, there will be a major tax announcement. Consequently, stock indexes from three firms closed at records last Thursday and Friday.
The president mentioned during a meeting with airport and airline executives last Thursday that the American businesses will experience less burden on taxes which will be announced in about two to three weeks.
The S&P 500.SPX was recorded with an increase of 7.44 points, equivalent to 0.32 while the Dow Jones Industrial Average.DJI gained 91.51 points or 0.45 percent at 20,360.88. Conversely, the Nasdaq Composite .IXIC garnered the highest increase of 23.62 points, equivalent to 0.41 percent, at 5,757.73.
The increase in percentage started when presidential elections were held last November 8 and it continued until today, with accumulated gains recorded higher, following the upcoming tax announcement.
Experts say that this was also partly due to the reaction of investors on the U.S. – Japan Summit held for two days that took place over the weekend. They somehow felt at-ease with how the event went, with the president not making comments or remarks about critical issues, such as security, trade and currency.
Meanwhile, the trend has also affected global markets in a positive way, according to Chief Market Economist Peter Cardillo believes. An increase of 0.63 percent was from the pan-Europena Stoxx-600 index, 0.64 percent was for the China’s Shanghai Composite and 0.41 percent for Nikkei in Japan at closing.
The top stock on the Nasdaq and the S&P was Apple with an increase of one percent with a high closing record. This was after Goldman Sachs started to increase its price target aimed at the stock. Zeltiq Aesthetics also followed suit with a 12.5 percent rise which brought the stock price to $55.60. This was after Allergan (AGN.N) offered to buy the company for a staggering price of $2.48 million.