Share

Wall Street rallies on US-Mexico trade deal; S&P, Nasdaq close at records

New York, - A trade deal struck on Monday between Mexico and the United States sent Wall Street soaring, with the S&P 500 and Nasdaq closing at fresh all-time highs.

The benchmark Dow Jones Industrial Average jumped nearly 260 points to close with a gain of one percent at 26,049.40, crossing the 26 000-point mark for the first time since January.

The broader S&P 500 added 0.8%, finishing at 2 896.68, putting it within range of 2 900 for the first time.

Meanwhile, the tech-heavy Nasdaq gained 0.9% to close at 8 017.90, breaking the 8 000-point threshold for the first time ever.

US President Donald Trump and outgoing Mexican President Enrique Pena Nieto hailed the new trade agreement, which raises hopes the North American Free Trade Agreement can be salvaged after Canada rejoins the talks on Tuesday.

Resolve disagreements

The deal would resolve disagreements on labor rights, and tightens local content requirements for autos, among other things.

But Trump also cast doubt on the prospects for success of a trilateral NAFTA, suggesting he could exclude Canada.

Maris Ogg of Tower Bridge Associates told AFP markets were banking on a successful outcome with Canada.

"Hopefully that will be the case but you just don't know," she said.

"Once you start to sweep some of the uncertainties away, the market feels a little more confident. That is what is happening."

Meanwhile, electric automaker Tesla did not have a good day, falling 1.1%.

CEO Elon Musk ended a market rollercoaster of speculation late Friday, announcing that Tesla would remain a publicly-traded company, despite his August 7 tweet saying he had "secured" funding to take the company private.

Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.05
-0.7%
Rand - Pound
23.98
-0.3%
Rand - Euro
20.55
-0.4%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.7%
Platinum
894.10
-0.3%
Palladium
996.00
-0.6%
Gold
2,193.32
-0.1%
Silver
24.41
-1.0%
Brent Crude
86.09
-0.2%
Top 40
67,889
+0.3%
All Share
74,074
+0.2%
Resource 10
56,132
+0.9%
Industrial 25
103,554
+0.3%
Financial 15
16,492
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders