>> A growing trade war all but brushed off by investors on Wall Street. Thursday, the Dow Jones Industrial Average and the S&P 500 both closed at record highs, despite escalating trade tensions this week between the world's two biggest economies. Reuters America's economics and markets editor, Daniel Burns.>> Wall Street is full on demonstrating its propensity for viewing the world as glass half full.
The narrative we're getting is that investors are relieved that the back and forth between the US and China, in particular, appears not as quite severe as some had feared it could be. And clearly some of the exemptions that were carved out when we got the tariff list earlier this week, have been fairly material to some of the gains we've seen.
The big carve out for Apple, clearly, is a big deal.>> The tariffs announced this week were not as punitive as some had feared, the Trump administration slapping 10% levees on $200 billion worth of Chinese imports. Some had expected it would be closer to 25%. China responded in kind.
That helped soothe nervous investors who pushed stocks back to record highs.>> A lot of that is around enthusiasm still for the strength of the U.S. economy. And as we get closer to the next earning season a pretty solid expectation that we're going to see another high teens, maybe even 20% year-over-year print on earnings growth for US companies.
>> But that strength in the economy is driving the Federal Reserve to tap on the brakes, pushing interest rates higher, which eventually could eat into stocks. And put an end to the longest bull run in Wall Street history.