While the US agreed to postpone a planned tariff hike on January first and to keep the rate on existing tariffs at 10% for another 90 days in return for greater purchases of American goods nothing has been resolved. Buying needed farm goods for a tariff time-out in many ways was a win for China.
Still, with less than a month left in the year, many traders are taking this as the green-light for a strong Santa Claus Rally pushing the stock index higher. Beware, this may be short-lived as trader's concerns quickly turn back to the Fed which can now revert back to its hawkish bias and resume rising rates well into 2019. More on how little this changes in the article below.