We are officially in an unprecedented bull market. The U.S. economy has expanded for 126 straight months over an entire decade without a recession. This along with President Trump saying a formal signing of the phase one deal with China is being “arranged” created a strong backdrop for market movement this week. On the other end, the House of Representatives impeached President Trump on two charges this week; however, the event appeared to have no effect on markets as the move is likely to halt in the Senate. House Speaker Nancy Pelosi also indicated she would delay sending the articles to the Senate in order to seek more clarity on the rules of the trial, casting doubt over whether the President has been impeached or not. In Europe, the Swedish Central bank ended a longtime experimental negative interest rate policy, raising its key interest rate level to 0.00%.
Friday was the final quadruple witching day of 2019, where stock and index futures and options all expire on the same day, increasing standard trading volume. Still, markets hit all-time highs again on Friday with the S&P 500 adding over 1.0% in the week and bringing gains for 2019 to greater than 30%. Boeing has decided to halt the production of the 737 Max in January, and it is expected that this will have significant ripple effects throughout supply chains and the rest of the economy in 2020. Other risk assets, international equities, commodities, and real estate, all gained with improving economic data on the manufacturing front and the brightening trade rhetoric.
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