Stock prices rise as U.S.-Canada NAFTA talks resume

U.S. stock prices rose slightly Wednesday as U.S.-Canada talks to replace the North American Free Trade Agreement resumed in Washington, D.C.

President Donald Trump shown Monday as he struck a trade deal with Mexico is now working to renegotiate the North American Free Trade Agreement with its other partner, Canada. Photo by Kevin Dietsch/UPI | License Photo
President Donald Trump shown Monday as he struck a trade deal with Mexico is now working to renegotiate the North American Free Trade Agreement with its other partner, Canada. Photo by Kevin Dietsch/UPI | License Photo

The Nasdaq Composite gained .2 percent, rising to a record high, followed by gains in Amazon and Alphabet, CNBC reported. The S&P 500 also rose .1 percent with gains in energy and utilities. The Dow Jones Industrial Average, was an exception, however, slipping 21 points.

The stock gains come after Canadian Foreign Minister Chrystia Freeland agreed to resume NAFTA trade talks Tuesday in Washington following the announcement that the U.S. and Mexico had reached a bilateral trade deal a day earlier.

“It’s always positive for the market when there are negotiations,” Quincy Krosby, Prudential Financial chief market strategist, told CNBC.

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Canada is under pressure to strike a deal with the United States by Friday and the dairy market is a main focus of the negotiations, a U.S. official told Bloomberg News. Trump has previously said Canada must reduce dairy tariffs before the two nations reach a deal, but there may be other issues that Canada can negotiate that can work to its benefit, officials said.

U.S. Treasury Secretary Steven Mnuchin said he was optimistic about striking a deal with Canada, but added the White House was willing to go forward with Mexico alone, if a deal can’t be reached.