President Trump has decided to delay China tariffs due to the Christmas season. He wants to help consumers, but he’s also helping Dow Jones stocks. | Source: REUTERS / Brendan McDermid
By CCN Markets: If you’re wondering what’s behind the rally in the Dow Jones and S&P 500 indexes, you can thank Santa Claus. President Trump in a sudden move decided to delay the latest round of China tariffs, which were originally planned for September. The reason? Trump reportedly said he’s “doing this for the Christmas season…to help people,” declaring the tariffs could have had an “impact on people” and deciding to instead delay them. Usually, the Santa Claus rally in the stock market happens in late December/early January, but this year Old Saint Nick appears to have visited investors and consumers for that matter a little early.
It’s not that anything has changed on the economic front, with fears of a recession still looming. But Trump just gave stocks another tailwind, if temporary, that combined with an accommodating Fed and share-buyback happy corporate America is fueling the rally in the S&P 500 and the Dow Jones. For more, here are three of the top performers in the Dow Jones index.
USTR Says Sept 1st most of $300 Billion of Chinese imports will be under 10% tariff. A large list that includes cell phones, laptops, and some clothes will be delayed until Dec 15th. Chinese Commerce Ministry tells us they agreed to nothing in return for delay #China #Trade
— Edward Lawrence (@EdwardLawrence) August 13, 2019
1.) Dow Jones Darling Apple
Consumer electronics are the big winners from the delayed tariffs, as evidenced by iPhone maker Apple leading the gains in the Dow Jones.