(Bloomberg) -- U.S. stocks rose to all-time highs as America and China prepared to sign their initial trade accord. White House economic adviser Larry Kudlow said on CNBC that a new round of tax cuts may be out this summer.
The benchmark S&P 500 set an intraday record for the sixth consecutive trading session, largely ignoring disappointing earning results from Goldman Sachs Group Inc (NYSE:GS). and Bank of America Corp (NYSE:BAC). Health care and utilities lead gains, outweighing declines in the financial and energy sectors. The Stoxx Europe 600 Index declined, while equities across most of Asia fell ahead of the 11:30 a.m. Washington time signing of the first phase of the trade accord.
“This is about trying to balance fair trade, it’s a step in the right direction,” said Matt Burdett, portfolio manager at Thornburg Investment Management.
Russia’s currency weakened as much as 0.6% against the dollar after Prime Minister Dmitry Medvedev resigned and said President Vladimir Putin will choose a new government, hours after the Kremlin leader called for a series of constitutional changes in his annual address.
European bonds held gains after data showed the German economy expanded at the slowest pace in six years in 2019. Gilts outperformed after U.K. inflation ebbed to a three-year low, further clearing the path for a Bank of England interest-rate cut.
While strong trading revenues suggest U.S. lenders have weathered Federal Reserve rate cuts, expectations of slowing growth and trade disputes, Target Corp (NYSE:TGT).’s woes signal tough times ahead for the retail sector.
Meanwhile, oil futures drifted, with West Texas Intermediate trading around $58 a barrel. Gold nudged higher.