Stocks bounce back. Stocks are bouncing back this morning after they kicked off December with a two-day slide. The S&P 500 Index has dropped 1.5% so far this month amid a pessimistic turn in trade headlines, culminating in President Trump’s indications on Tuesday that he has “no deadline” in reaching a limited trade agreement with China. More optimistic reports on trade are giving stocks a lift today, but we’ve seen this back and forth before. We’re watching for more concrete signs of a limited trade agreement before December 15, when tariff hikes on $160 billion in Chinese imports are scheduled to kick in.
A rough start to December. It has been a rough start to the most wonderful month of them all, with the S&P 500 down each of the first two days of December. Don’t stop believing just yet, though. Stocks have overcome volatile starts to December before, and we don’t think markets are positioned for another swift downturn like we saw in December 2018. We’ll explain more later today on the LPL Research blog.
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