The Dow just had its best week of the year. | Source: Win McNamee/Getty Images/AFP
The short-term recovery of the Dow Jones is said to have been triggered by two major catalysts: the increasing likelihood of the Federal Reserve dropping the benchmark interest rate by the 3rd quarter of 2019 and the announcement of a trade deal with Mexico by the U.S.
Why the mexico trade deal is important for the dow jones
U.S. President Donald Trump officially announced the establishment of a signed agreement with Mexico on June 8 that includes a promise from the government of Mexico to take strong actions against migration through the southern border of the U.S.
President Trump said:
I am pleased to inform you that The United States of America has reached a signed agreement with Mexico. The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended. Mexico, in turn, has agreed to take strong measures to stem the tide of Migration through Mexico, and to our Southern Border.
This is being done to greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States. Details of the agreement will be released shortly by the State Department. Thank you!
The swift achievement of a deal with Mexico following the unexpected fallout between the U.S.