Stocks

U.S. Stocks Could Be Headed for Fresh Records As Trade-Deal Hopes Remain High

U.S. markets are poised for yet more records after a report U.S. officials may remove tariffs on Chinese goods, to seal a “phase one” trade deal.

U.S. stock futures are climbing on Tuesday, a day after all three major stock indexes nabbed record highs, thanks to enthusiasm about a China-U.S. trade deal.

Wall Street stocks could carve out more records on Tuesday, after a session that saw all three major indexes nail closing highs. Helping that sentiment along is a report the U.S. may roll back tariffs on Chinese imports worth $112 billion.

A day after the Dow Jones Industrial Average soared 114.75 points to its first record close since July, stock futures are up.

Got a nagging feeling about those all-time highs? So does RBC Capital Markets’ head of equity strategy Lori Calvasina who is sticking to her year-end 2019 S&P 500 target of 2,950, even if the index is past that.

Her concerns? “Euphoric” U.S. equity futures positioning among asset managers, valuations that are at 2017 highs, earnings-growth outlooks for 2020 that are too optimistic and baked-in gains on trade deal hopes, to name a few.

And “we haven’t learned anything in the current reporting season that justifies euphoric positioning and peak valuations,” she argues. Read more here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.