Markets Hit Record Highs on Trade Deal

Photo Credit: Evan Vucci/AP/Shutterstock
August 27, 2018
Updated 2mo ago

By Kavitha Shastry

U.S. stocks soared Monday after President Trump announced a trade deal had been reached with Mexico.

The Nasdaq marked its first-ever close above the 8,000 mark, and the Dow Industrials rose more than a percent, crossing 26,000 for the first time since early February. The S&P 500 also posted a record close.

"The market is getting a bit more familiar with the president's negotiating tactics," said John Petrides, managing director at Point View Wealth Management. "This is true to his election base, and the market is reading it as a positive sign."

Leading the charge on the Cheddar 50 Monday was General Motors, which rose almost 5 percent. U.S. automakers broadly got a boost after Trump said he was considering taxing Canadian car imports. Twitter and Alibaba also saw significant gains.

It wasn't all good news, though. Shares of Chipotle were down almost 5 percent after analysts at Wedbush cut their rating and price target on the stock. And Tesla pared its earlier losses to end the day down about a percent. CEO Elon Musk Friday announced in a blog post he would no longer pursue plans to take the company private.

Cannabis stocks were also big winners on Monday, as momentum for legalization continued to grow. Canada's Tilray, which reports earnings Tuesday morning, inked a deal to supply Nova Scotia Liquor.