Stock Market Wrap Up: This Week in Market News

March 8, 2018
1720 Views

As we head into Friday the US stock market is up slightly, with the Dow Jones up 0.38%, the S&P 500 up 0.45, and the NASDAQ up 0.42%. While these figures may seem small, it’s the daily growth like this that has stock investors regaining confidence after the turbulent month that was February. Although we’re not close to achieving widespread stock highs like we had in December and January, any small daily increase is still good news.

If you already invest in the stock market or if you’ve been following the news as you plan future investments, then you will want to know what has been happening in the market this week. Here are the most important stories that investors should know about.

Asian Stock Markets Have Surged Following News President Trump Will Meet With Kim Jong Un

President Trump had rocky relations with North Korean leader Kim Jong Un throughout 2017. Continued advances in nuclear testing by the isolated state led to significant sanctions from the United States and other countries, and nearby markets in Japan and South Korea were impacted.

News has now emerged that President Trump has agreed to meet with the North Korean leader before May this year. The meeting was agreed by the White House following a visit from North Korean representatives. The Nikkei in Japan increased by just over 1% following the news, and the South Korean SEU index was up 1.27% as of Thursday night.

Thawing relations between the two countries and potential denuclearization of North Korea could lead to better stability in the region and economic benefits for Japan, China, and South Korea, as well as their trading partners including the US.

J.P Morgan Co-President Predicts Huge Losses for the Stock Market in Three Years

February was a trying time for US investors. Volatility in the stock market meant losses for those who weren’t quick to react, and those that did sell their investments helped contribute to a stall in the bull market.

J.P Morgan co-president Daniel Pinto thinks that the worst isn’t over, saying that corrections in the next three years could lead to a 40% drop in stock market indexes, which could leave us in the position we were in at the start of 2017. Pinto told Bloomberg Television that “we know there will be a correction at some point. It could be a deep correction. It could be between 20% to 40% depending on the valuation.”

This is worrying news for investors, however, it’s only a prediction at this point. Other analysts have gone on the record with optimism that the stock market would end the year in a better position than it started with in 2018.

More Details Emerge on Metal Tariffs

President Trump has clarified more details about metal trade tariffs, which will come into effect as of March 23. Initial news of the tariffs sent the stock market into decline, but the latest news could help to alleviate worries and give confidence back to investors who engage in the manufacturing sector.

The tariffs remain at 25% for steel and 10% for aluminum, but the government has now announced that Canada and Mexico will not be included for the foreseeable future. President Trump also revealed that other key trading partners and allies could be made exempt at a later date, with Australia being hinted at due to its status as a long term partner in both trade and areas of defense.

The story of the 2018 stock market continues to evolve, and we will continue to bring financial articles and stock market news as it becomes available.

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