S&P Surges To New All-Time High On Fed And Trade Talks

Stocks closed sharply higher yesterday with the markets poised for their 3rd weekly gain in a row.

Traders cheered the Fed's indication that rates could soon be cut. In fact, traders have placed a 97% certainty on a rate cut coming this year (and likely in July).

While the Fed remains bullish on the economy, they left no doubt they will step in to "sustain the expansion" if needed.

And optimism continues to grow ahead of President Trump and President Xi's meeting at next week's G20 summit. Delegations from both countries will be holding talks in preparation of the presidential meeting where market watchers are expecting a real breakthrough to take place, and maybe even an agreement.

Stocks also brushed off growing tensions between the U.S. and Iran after it was reported that Iran shot down a U.S. drone in international airspace. The morning was filled with speculation of war, but President Trump was pretty clear that he does not want war with Iran and that the incident might have been an unintentional error on Iran's part.

Many still expect a response from the U.S., but it's looking like it will be more measured.

In the meantime, the S&P soared to yet another new all-time high. The Dow is just 0.74% away from a new high of their own. And the Nasdaq only needs an extra 1.55%.

I've been saying it over and over, and I'll say it again -- these are truly historic times for the economy and for the market.

And that means the potential for historic gains.

So make sure you're taking full advantage of it.

Best,

Kevin Matras

Executive Vice President, Zacks Investment Research

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