Goldman Sachs (NYSE:GS) stock rose 1.35% on February 25. Shares have jumped 18.9% in 2019 so far. JPMorgan Chase & Co. (NYSE:JPM) climbed 1.05% on the same trading day. Its stock has climbed 8.7% in 2019 as of close on February 25.
United States President Donald Trump has declared that the U.S. and China are “very close” on a trade deal that would alleviate the fears of many in the investing world. The trade spat has hung like a black cloud over the head of investors in recent months, as another batch of tariffs set for March 1 threatened the plunge the largest two world economies into an all-out trade war.
Recent reports suggest that China has committed to buying up to $1.2 trillion in U.S. goods. However, there has been little movement on intellectual property issues. This is a sticking point for many trade hawks on the China file.
A deal in the coming weeks could send U.S. and global markets upward into the spring. The year has already started with a stunning rally on the back of a dovish turn from central banks. Positive news on the trade front could cap off a great first half for markets after a scary end to 2018.
Of course, a deal has yet to take shape. The market has been hot to start 2019, and it is tough to recommend buying pricey blue chips at this stage. In this instance investors should await concrete news and hope for a fruitful end to this trade spat.
