Stock markets indexes rose after an agreement to end U.S. government shutdown was announced on Friday.
However, the dollar moves vice versa as traders are looking for the next week’s Federal Reserve meeting concerning the policymaker’s cautions on the interest rate.
President Trump announced an agreement reached to reopen the government after 35 days of shutdown, that has left thousands of federal workers without payroll.
Markets move upwards as investors hope that reopening the government will take pressure off the economy. However, they are not still sure whether the final deal will be reached by February 15, the deadline for the permanent government funding agreement.
The Dow Jones Industrial Average rose 0.75 percent, or 183.96 points, to 24,737.2, the S&P 500 gained 22.43 points, or 0.85 percent, to 2,664.76, and the Nasdaq Composite added 91.40 points, or 1.29 percent, to 7,164.86.
“Earnings have also been a positive component although the number of beats is lower than the last two quarters and expectations were lowered,”- vice president of trading and derivatives for Charles Schwab in Austin, Texas, Randy Frederick said.
However, some investors turned to gold as safe-haven bet. That surely shows that not all investors are optimistic on new funding deal to be reached by the deadline. Gold was up to $1,302.99 an ounce, adding 1.8 percent.
The euro rose 0.94 percent, to $1.1411. The dollar index, which measures the dollar against six other currencies, fell 0.87 percent.
But, a “synchronized global economic slowdown” is on the way and any even small escalation of the US-China trade war would worsen a turndown,
according to the latest Reuters polls.