Trump was planning to put tariffs with Mexico because of the influx of migrants reaching the southwestern border of the United States. However, a agreement has been made between the United States and Mexico causing Trump to drop the plans of imposing tariffs. The agreement requires Mexico to try to reduce the amount of migrants coming to the border and in return the United States will not impose tariffs.
Tariffs on Mexico would have caused prices on goods on rise in the United States and would cause some damage onto the US economy and companies because the US imports and exports lots of products with Mexico. The stock market would've taken a hit too if tariffs would be put into place.
The relief of no tariffs between the US and Mexico and trade optimism helped the stocks in the United States rise. Investors are relived about there being no tariffs so they have more confidence in the stock market allowing the stock market to rise. The Nasdaq closed at 7,823.17 points today with a gain of 81.07 points or 1.1%, the S&P 500 closed at 2,886.73 points with a gain of 13.39 or 0.5%, and the Dow Jones Industrial Average closed at 26,062.68 points with a gain of 78.74 points or 0.3%. These indexes are producing positive numbers which is showing a positive sign for investors.
The stock market shouldn't be effected as much unless Trump imposes tariffs on Mexico because he thinks that they didn't follow up on their side of the deal.
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| Nasdaq Composite. Image credit: Yahoo Finance. |
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| S&P 500. Image credit: Yahoo Finance. |
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| Dow Jones Industrial Average. Image credit: Yahoo Finance. |
Very interesting.
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