Trump and Draghi send S&P 500 to five-week high
The S&P 500 is near an all-time record. The index is up 36 points today to 2925, the highest since May 6.
Two factors have sparked the rally:
1) Draghi saying the ECB will implement additional stimulus unless the situation on growth and inflation improves
2) Trump saying an extended meeting with Xi will take place at the G20
There is a bit of a logical disconnect in the market moves. The expectation is that the Fed will ease because of the trade war. However if the trade war is called off, does the Fed still ease? The market is pricing in both easing and an improvement on trade.
The thing is, the market might get it all. The risk is the Fed isn't so dovish tomorrow and the optimism evaporates.