Each of the three U.S. stock market averages each posted new record closing highs on Monday as optimism towards trade between U.S. and China continues to wash over investors. Officials from each country confirmed last Friday that they had agreed on terms of a phase one trade agreement. The agreement includes the U.S. reducing the tariff rate on $120 billion worth of Chinese imports to 7.5% from the previous 15%, as well as maintaining the existing 25% tariff on about $250 billion in other Chinese imports.
Here's how the U.S. market settled on Monday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Trade negotiators plan to sign the phase one trade agreement after the U.S. holiday season in January.
In U.S. Economic News, business activity rose to a five-month high in December according to IHS Markit's flash purchasing managers' index (PMI) released Monday. The headline index increased to 52.2, up from Novembers 52.0. Chief Business Economist Chris Williamson state that "The surveys bring welcome signs of the economy continuing to regain growth momentum as 2019 draws to a close, with the outlook also brightening to fuel hopes of a strong start to 2020...December's expansion was led by an improved performance of the vast services sector, accompanied by another month of steady manufacturing growth."
In U.S. Stock Sector News, all but Industrials, with a decrease of -0.03%, rose to new heights in current markets. The sectors that experienced stock growth include Energy +1.43%, Utilities +1.29%, Health Care +1.08%, Communication Services +1.04%, Information Technology +0.87%, Real Estate +0.76%, Materials +0.47%, Consumer Discretionary +0.43%, Financials +0.40% and Consumer Staples +0.36%.
Lastly, in Commodity and Currency News, oil prices have maintained their ongoing growth, with West Texas Intermediate increasing almost +0.75% and Brent Crude's barrel prices climbing +0.57%. Gold, on the other hand, saw a steep drop in prices, with the metal's ounce price declining -3.56% to price at $1,475.88. Finally, the U.S. Dollar also posted losses today, with the DXY Index decreasing -0.10%
