For the week, all three major U.S. stock indexes gained at least 2.2%, with the S&P 500 hitting its first record close since April. Bond prices rose, pushing 10-year Treasury yields down to 2% for the first time since 2016.
Along with stocks and bond prices rising, the price of oil jumped in recent trading sessions. With the Central banks surprising Wall Street by keeping rates flat, coupled with enthusiasm around a Trump and China meeting, momentum was created.
The Dow industrials rose 2.4% this week and are on pace for their best month in years. The gains come as investors are delicately balancing indications that trade disputes may lead to slower economic growth around the world with optimism that President Trump will move closer to a China trade deal in meetings at the G-20 summit.
The investors are also considering the possibility that central banks will step in and cut rates if economies do falter, which may temporarily raise markets, even as investors begin to recognize that we’re nearing the end of the current economic cycle.