Markets rose on Tuesday, with the S&P 500 rising 0.9 percent.
“The market is responding to the Trump administration backpedaling a bit on Huawei, which suggests that we are moving toward rather than away from a trade agreement, and that’s what the market wants to hear,” said Crit Thomas, global market strategist with Touchstone Investments.
Deutsche Bank's head of asset allocation and chief equity strategist Binky Chadha sees more gains ahead for the stock market, telling CNBC on Tuesday that he is keeping the S&P 500 target at 3,250.
However, while the stock market is making a comeback, a CNBC report noted that the bond market is pointing to more trouble ahead, with the US 10-year Treasury yield trading about 40 basis points below its 2019 high and within 10 basis points of its year-to-date low.
Dave Haviland, managing partner at Beaumont Capital Management, pointed out that transports, small caps and mid-cap stocks have not hit record highs this year while “outflows from stocks and inflows to bonds is another sign that bonds have been sending the right message, not stocks”.
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