Markets climbed late on Monday after the announcement that the United States and Mexico had reached an agreement on the North America Free Trade Agreement (NAFTA) after several rounds of negotiations. According to a report from Reuters, both the S&P 500 and the Nasdaq closed at “record-highs.”
Technology stocks, in particular, saw significant increases in both markets.
The ongoing NAFTA talks and the overall political situation between Washington and Mexico City have left many investors feeling gunshy about investing in the stock market, however experts hope the new agreement will calm investors’ nerves.
“It takes a long time for people to come out of the concerns related to those thousand-point down days and feel a little bit more comfortable,” said Robert Pavlik, chief investment strategist at SlateStone Wealth, LLC in New York while speaking to Reuters. “And the trade concerns and the tariffs, that played a part in it, that’s what held it back.
Besides technology, automakers also finished strong on Monday, with shares of both the Ford Motor Company and General Motors rising more than 3 percent.
“It’s a big deal because everybody ultimately is looking for certainty and closure on what’s going to happen with trade, tariffs,” said James Kamsickas, CEO of Dana Incorporated, an auto parts manufacturing firm, while speaking to The Street.