On late Thursday, stocks bounced during the third session of the day as the news spread that it is possible for the Trump administration to postpone the implementation of tariffs on Mexican goods exported to the United States. Trump announced that there has been advancements with the talks, but states that it is necessary to exert more efforts in the talks. Furthermore, the ongoing belief that the Federal Reserve has the potential to cut rates around the middle of June also contributed to the ascent. This news allowed the market to experience a turn around. Returns for crude oil also advanced as did the major sectors of the market. As a result, the S&P 500 index rose 0.61% and the Thursday rally sent the index for its best weekly performance.

Aiming to avoid the Implementation of tariffs scheduled to be imposed on Monday, Mexican officials were reported to exhibit a show of power, acting on the demand as they pledged to station 6,000 soldiers on the country’s border, aiming to decrease the immigrants heading from Mexico to the U.S.. The possibility of the U.S postponing the imposing of tariffs hinges on whether Mexico can control the illegal immigration to the country, which is the greatest point of disagreement. It also depends on whether President Donald Trump will give consent to this shift. Also on Thursday, a Reuters’ tweet reported that on Monday, the White House still intends to imposd a 5% increase on tariffs on Mexican exported goods to the U.S, unless Mexico agrees to execute more measures in order to cease the illegal border crossings.

By: Cyril Latrice Cajanding