US Market hits fresh highs amid trade optimism

The US stock market finished session at new record high on Monday, 23 December 2019, as investor sentiment got a boot after report that China will cut import tariffs products ranging from frozen pork and pharmaceuticals to some high-tech components starting 1 January 2020. At closing bell, the Dow Jones Industrial Average rose 96 points, or 0.34%, at 28,551.53, the S&P 500 index advanced 3 points, or 0.1%, at 3,224.01, while the Nasdaq Composite index climbed 21 points, or 0.2%, at 8,945.65. U.S. markets scheduled to open for only a half day on Tuesday and close on Wednesday for Christmas.

Rising optimism around a "Phase 1" trade deal announced earlier this month between the United States and China has helped put investors in a buying mood. US President Donald Trump over the weekend said the US and China would very shortly sign their so-called Phase 1 trade pact, which was announced earlier this month.

Additionally, China's finance ministry announced starting January 1, it will lower import tariffs on over 850 products ranging from frozen pork to some types of semiconductors.

Meanwhile, traders largely shrugged off a report from the Commerce Department showing an unexpected slump in durable goods orders. The report said durable goods orders plunged by 2% in November after edging up by a downwardly revised 0.2% in October.

A separate report released by the Commerce Department showed a significant increase in U.S. new home sales in the month of November. The Commerce Department said new home sales jumped by 1.3% to an annual rate of 719,000 after plunging by 2.7% to a revised rate of 710,000 in October.

Shares of Boeing jumped after the Chicago manufacturer said CEO Dennis Muilenburg is stepping down immediately over the company's troubled Max 737 aircraft. The board's current chairman David Calhoun will officially take over on January 13.

Apache Corp shares surged after it and French rival Total announced a joint venture to develop a project off Suriname in a deal that gives the US oil and gas producer a cash injection.

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