Wall Street -Indices are rising amid positive signals from Washington and Beijing

Wall Street traders have raised US stocks, as both the United States and China have shown readiness to keep trade negotiations running, while tension in the Middle East calms down, and the rally associated with artificial intelligence continued. After its worst fall in six months, the S&P 500 index increased by 1.6%, which expanded the gains of a bull market that had already added $ 28 trillion to its value. The index has recorded its best session since May. An important index of shares of electronic chip enterprises jumped by about 5%, while Broadcom shares rose by about 10% after Openai agreed to buy its custom chips and network equipment under a perennial contract. With the relief of the trade and investors who have raised the fear of a new technical bubble, the market returned that the ‘Buy the Dip’ strategy remained determined before the Non -Office Season, with a group of major bank reports on Tuesday. Mark Hackett of Nationwide said: “Investors are still eager to get exposure to the markets, and if this recovery continues, it will reinforce the idea that retail investors cannot be shaken easily, reminding us that the purchase of the dip can still pay off.” Optimism supported by positive signals from Washington and Beijing increased the appetite for risk after the administration of US President Donald Trump expressed openness to reach an agreement with Beijing to contain new trade tensions, while the Chinese Ministry of Trade asked for further negotiations to resolve the outstanding issues. Morale also got an extra boost with Trump’s visit to the Middle East to celebrate an agreement ending the war in Gaza and secured the release of prisoners held by Hamas. Trump said food and help began to flow into Gaza, which was destroyed by the war. Meanwhile, US bond futures did not move much with the bond market closed for the Columbus Day holidays, while the dollar rose 0.2%. “You can argue all the valuations, economy, confidence or political risk, but you can’t bet against a bull market that goes strong,” says Callie Cox of Ritholtz Wealth Management. The third anniversary of the bull market and the prospects for continuing the Bull market in US equities reached its third year on Sunday, and the big question is now: Where do shares go from here? Jeff Buchbinder and Adam Turnquist of LPL Financial said that bull markets that reached their fourth year performed well during that year, with the S&P 500 index scoring an average profit of 12.8% in the fourth year over seven bull markets since 1950. The two analysts added: “First, we need economic growth. Recessions are killing emerging markets, and fortunately we do not see a recession on the horizon. The Federal Reserve is in the middle of a cycle of reduction of interest rates, and inflation appears to be under control despite the increase in rates.” “In general, we believe that the bull market will remain, so periods of decline should be an opportunity for investors with less exposure to stocks to increase their long-term positions,” said UBS Global Wealth Management UBS Global Wealth Management. The performance of stocks is related to data on work, inflation and profits. Shares are expected to depend on employment, inflation and profits, especially data related to artificial intelligence spending and opportunities to generate revenue from the rest of the year, in addition to the gains of technology companies and their future expectations on a broader scale, according to Anthony Saglimbini of Ameriprise. He added that the short -term risks include fluctuations in profits, the increasing trading tension between the United States and China, in addition to the possibility of disappointment of investors as the expectations of artificial intelligence of large enterprises does not match the high aspirations. “However, if the fundamentals remain strong, we believe that by the end of the year, the market has a chance to establish slightly higher, despite temporary shifts in sentiment,” he said. High valuations and fear of delaying the earnings of the 13 emerging markets since World War II has completed 7 their fourth year, with an average total profits of 88%. In just three years, the current market has almost achieved these profits, which increased the price-to-earnings ratio for the S&P 500 index to 25, the highest ever for a bull market in its third year, according to Sam Stovall of CFRA. Although Stovall believes that the bull market has a good chance of celebrating its fourth anniversary, history indicates that it can be a volatile year. Also read: Morgan Stanley: US stocks are at risk of falling 11% as a result of the trade war. Ameriprise’s Zaglimbeni said: “While the bull market is entering its fourth year, we believe that the acceptance of a balanced and cautiously optimistic prospects for the future remains the most suitable approach, given the current fundamentals and historical data.” Strategists at RBC Capital Markets wrote in a note that the rally can stop in US stocks if earnings -momentum drops in the third quarter, adding: “If the strong sentiment we saw during the previous earnings season is not maintained, it will be difficult for large indexes to avoid a period of calm in the nearby term.” The team led by Lori Calvasina noted that analysts’ enthusiasm for US corporate earnings loses momentum, at a time when shares trade near record levels, suggesting that the increase may experience obstacles during the current earnings season. The earnings season is crucial for the review of the strength of the market. The Citigroup index that detects US earnings reviews, which measures the number of analysts who increase their estimates compared to those who lower them, showed stability for the first time since August. Meanwhile, the S&P 500 is trading near one of its highest valuations in 25 years, leaving little room for any negative news. With the earnings season approaching, traders approach the record rise in US stocks with caution, as investors’ patience with companies that do not meet expectations has dropped, while seeking the assurance of various complex issues, from the sustainability of artificial intelligence expenses to the impact of high rates on companies. “This earnings season is important for assessing the health of the overall bull market,” said Richard Sapersstein of Treasury Partners. “Investors will carefully investigate the earnings of technology companies, as there is increasingly a question whether their spending on artificial intelligence and data centers is making profits.”