Just like claims of “skyr ocketing” gas prices, there are some other things that don’t pass the smell test — and I’m not just talking about your kid after gym class.
One of them is the stock market rising despite the fact that the trade war between the US and China has been heating up.
Stocks had a nice run last week and were up sharply again on Monday, with the Dow Jones industrial average rising 320 points, to 24,776.
But it makes little sense that Wall Street was able to brush off the fact that stiff tariffs were put in place against Chinese goods — and US goods, when Beijing retaliated.
There are several explanations for the way the market reacted.
One is that Wall Street just doesn’t care if the US and China beat in each other’s economic brains. Another is that traders see the trade war for what it really is: President Trump’s ego getting the better of common sense.
Or maybe Wall Street knows that excellent corporate profit reports will start coming out this week and panic over the tariffs can wait. Those corporate profit reports might, in fact, mention the harmful effects that the trade tiff will have in the future, and that might warrant Wall Street’s attention.
Or the stock market may simply be going higher because it’s the middle of the summer and aggressive traders can often make it do whatever they want when the bulk of their colleagues are at the beach.