US benchmark close at record highs to kick off the New Year

• Nasdaq Composite Index rallied 1.3% to 9,092.
• DJIA, rallied more than 330 points, or 1.2%, to end at around 28,869.
• S&P 500 index ended +0.8% at 3,258.

US benchmarks were ending the day higher on Thursday, ending at records for the stat of 2020. The Dow Jones Industrial Average, DJIA, rallied more than 330 points, or 1.2%, to end at around 28,869, the S&P 500 index ended +0.8% at 3,258, while the Nasdaq Composite Index rallied 1.3% to 9,092. 

The bullish news that the Peoples Bank of China announcing that it would reduce the portion of deposits on its commercial banks that are required to set aside as reserves lifted spirits and propelled stocks on another leg higher following a Christmas and end of year holiday correction. However, the good news from Asia spilt over to European and US stocks for a risk-on start to the year. 

Phase-two deal to be negotiated

At this juncture, we are waiting for the phase one deal to be signed, but there are some doubts as to whether a phase two deal will be in the making so soon, despite President Trump saying that he will fly to Beijing soon to work on it. However, officials in Beijing say they don’t anticipate sitting down to discuss a phase two deal before the U.S. election, in part because they want to wait to see if Trump wins a second term.

“It’s Trump who wants to sign these deals, not us. We can wait,” one Chinese official told Reuters.

DJIA levels