US stocks perk up to the best levels of the day. What will keep the rally going?

The week started off poorly with a 3% drop in US equity markets but there has been a rapid and powerful turnaround. The S&P 500 is on track for its fourth consecutive day of gains with a 0.3% rise today.

The index is at its session highs going into the weekend on hopes (expectations?) that Trump will soon announce some trade deals, or at least some MOUs on the way to deals.

So much remains unknown, including what tariffs levels that the US will set as a floor and what other countries might be willing to pledge. At the moment, there is talk of countries buying things like agricultural products but those prices are set globally and buyers are often private so it’s not clear how that could work.

Trump continues to remain focused on trade deficits and raising revenue via tariffs, which is a self-defeating strategy if the aim is bringing down barriers everywhere.

This article was written by Adam Button at www.forexlive.com.