Market finishes up after report of possible delay to Mexico tariff implementation
S&P 500, Nasdaq notch third-straight day of gains
Dow books longest daily win streak since March
U.S. stocks closed solidly higher Thursday, following after reports that Trump administration is considering delaying a planned 5% tariff on all imports from Mexico, as discussions continue over how to stop the flow of Central American migrants to the U.S. border.
How did the benchmarks perform?
The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.09% rose 181.10 points, or 0.7%, at 25,720.66, representing its longest string of gains since March 18, according to Dow Jones Market Data. The S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.28% , meanwhile, rose 17.34 points, or 0.6% to 2,843.49, while the Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +0.40% added 40.08 points, or 0.5%, to reach 7,615.55.
Each of the major benchmarks spent time in the red Thursday, with the Dow fall 21.52 points or 0.1% lower to 25518.05, the S&P 500 trading as low as 2822.4, a loss of 3.71 points, also 0.1%. At session lows, the Nasdaq fell as many as 29.25 points, or 0.4% at 7,546.23.
What drove the market?
Wall Street was heartened by a report Thursday afternoon that new tariffs on Mexican imports may not go into effect, and if they do, will be short lived.
Sentiment was also buoyed by rhetoric from central bankers, including the European Central Bank’s, which was interpreted by some as dovish. The ECB left its overnight deposit interest rate at minus 0.4%, while extending its forecast for how long it will keep rates this low into at least the first half of 2020. The ECB had previously indicated rates would remain on hold through the end of 2019.
The central bank run by President Mario Draghi also provided more details on its bank-lending program, known as TLTROs, which aren’t as generous as previous iteration of the program. Draghi also said that the decision to keep rates unchanged until next year doesn’t preclude more stimulus, if the European economy deteriorates significantly.
Meanwhile, there appears no immediate signs of easing of Sino-American trade tensions, as Trump reiterated a threat to place tariffs on a further $300 million in China imports “at least,” according to Reuters . Trump said he’ll make a decision on additional tariffs “probably right after the G-20” meeting scheduled end on June 29.