Little Effect On The Stock Market Following Trump-Kim Jong Un Meetings

Little Effect On The Stock Market Following Trump-Kim Jong Un Meetings

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Following the “peace regime” agreement between the US and North Korea on the topic of the Korean peninsula, there has been little effect on US stocks, contrary to what many may have thought following such a historic agreement.

The Stock Market

The signing of the “peace regime” on the Korean peninsula did not create much of a difference in the US stocks as of last Tuesday. This may have been due to the fact that denuclearizing North Korea, which is the most highly valued aspect of the political conflict, was not clearly part of the agreement, and therefore kept the US market reigned in.

The S&P500 closed with a slight rise of 0.17% and Dow Jones’ average closed with a slight drop of 1.6 points- possibly because of Goldman Sachs’ and Travelers Companies’ losses. Because of the small increases in giant corporations like Apple, Amazon, Facebook and Netflix, Nasdaq closed with a rise of 0.57%.

The market is also still waiting until the end of the two-day meeting with the US Federal Reserve.

Comments On the Market

Paul Tudor Jones, a renowned stock market investor who predicted the crash in 1987 said he wasn’t surprised that the market wasn’t affected, calling it “semi-anticlimactic.”

“I think we’ll see rates move significantly higher beginning some time late third quarter, early fourth quarter. And I think the stock market also has the ability to go a lot higher at the end of the year. … I can see things getting crazy particularly at year-end after the midterm elections … to the upside.”

Other Stock Market Predictions

Investors are also still trying to assess whether the current low inflation trend will be changing soon. Quincy Krosby, Prudential Financial’s chief strategist said that the main thing investors want to know about the Fed is “whether they want to see a fourth rate hike, do they even see it as a possibility.”

He pointed out that many believe if they do and in turn ramp up their prices, it would give great momentum to the economy. However, others believe the economy would not be able to withstand it.

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