Funds closed lower on Thursday as President Donald Trump confirmed that barter talks with China might not be successful. But Peter Costa, a governor at the New York Pile up Exchange, said this is not the beginning of a bear market.
“You’ll never see a endure market start with the Russell 2000 hitting an all-time apex,” Costa, president of NYSE trading firm Empire Executions, said on “Mean Bell” Thursday. “It’s never happened. It will never happen.”
In episode, the small-cap index closed at an all-time high of 1,625.29 on Thursday. The intraday tear down reached an all-time high of 1,627.32.
Another sign of the strong economy is the raise the white flag curve, said John Burke, owner and manager of Burke Pecuniary. He pointed out that so far in May the yield curve, or the spread between long- and short-term amusement rates, has increased.
“The stock market has never come to a halt when the comply curve is getting steeper,” Burke said on “Closing Bell.”
Peaceful, Thursday’s trading session was a disappointing one for market watchers. All three biggest indexes closed lower.
Some investors fear continued dealings tensions may be the culprit.
But Barbara Doran, director and senior portfolio superintendent at Yorkbridge Wealth Partners, disagreed. “We’re used to getting a lot of noise on the customers talks,” she said on “Closing Bell.”
Costa said the most disposed to outcome of the trade talks is “some sort of compromise.”
“There are advisors that are prevalent to be a lot more vocal and [telling Trump], ‘Look, this could be darned detrimental, not only to the Chinese economy but to the U.S. economy and the world economy,'” Costa intended.
Still, Burke said investors, including his firm, are “most ill at ease about” political factors influencing the market.
“It’s not just China. Europe is mad about what we’re doing with its steel tariffs there. And of certainly, we’ve got NAFTA too. All of these things are bad. And if we could just get them out of the news and clarified … then the market is going to go higher.”