Investors see some progress on trade, but need more to sustain the bounce
Wall Street's feeling good this morning. Stock futures got a boost after President Donald Trump touted a trade agreement with the United Kingdom, calling it "the first of many." While the exact scope of the agreement isn't clear, the news is a much-needed positive for a market that's been on edge for more than a month. "Investors aren't necessarily excited about a UK agreement specifically, but the hope is that this is just the start in what will be a string of announcements with other countries ... in the coming days and weeks," wrote Adam Crisafulli of Vital Knowledge. The S & P 500 tumbled in April after Trump unleashed higher tariffs on imports into the U.S. Some countries, notably China, retaliated with higher duties of their own. The broad market stock index quickly recovered, though, as some of the charges were suspended and the Street anticipated easier tariff moves, finally erasing its post "liberation day" losses last week. Since hitting a closing low on April 8, the S & P 500 is now up 13%. .SPX 1M mountain SPX year to date That said, Wall Street will likely need to see more signs of progress for this bounce to continue. "We think investors need to keep their enthusiasm in check," wrote Crisafulli. U.S. and Chinese officials are due to meet this weekend for preliminary trade talks in Switzerland. Depending on how those talks go, stocks could either see further gains or revisit the lows seen last month. Elsewhere Thursday morning on Wall Street, RBC upgraded Mosaic to outperform, calling for more than 25% upside. Mosaic mines phosphate and potash that are used in fertilizers. "While operations have been challenged in recent years, we believe management has set out clear plans for operational improvements that if executed well should meaningfully benefit both margins and sales volumes," the bank wrote.
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