The US stock market, the S&P 500, hit an intraday high on Monday, supporting the view that the US stock bull market, which has been in existence for 10 years, will continue after consumer spending rose in March and inflation data moderated.
The S&P 500 index broke the intraday record high of 2,940.91 points set on September 21 and rose to an intraday high of 2,949.52. The S&P 500 has risen more than 17% so far this year. On Monday, the index and the Nasdaq index both set new closing records.
The hopes of a Sino-US trade war, the strong corporate performance and the dovish's Fed policy have pushed the stock market's gains this year. Although Monday's gains were small, strategists said that recent highs have encouraged further buying. .
“This does create pressure to bring in more buyers. Today’s news provides a reason for the fear of vacancies. This will weaken bears or bear more bulls,” said Leuthold Group’s chief investment strategist. Jim Paulsen said.
A US Department of Commerce report showed that US consumer spending rose more than in nine and a half years in March, but a key inflation indicator recorded the smallest annual increase in 14 months.
Moderate inflation supports the Fed’s recent decision to suspend further interest rate hikes this year.
As trade negotiations entered the final stage, US negotiators traveled to China on Tuesday to try to finalize the details and end the long-standing tariff dispute between the two countries.
U.S. Treasury Secretary Nuchin said in a television interview on Monday that he hopes that China and the United States will finally reach a trade agreement through the next two rounds of negotiations.
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