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Wall Street hits records on news of trade deal

The S&P 500 and Nasdaq closed at record highs on Thursday, propelled by news that a trade deal was in the works.

A source told Reuters that the White House had reached a 'phase 1' deal with Beijing.

Meanwhile new economic data showed producer prices were unchanged in November, signaling inflation remains soft.

The numbers strengthened the Federal Reserve's case to keep interest rates steady.

But this economist expects the U.S. economy will eventually pick up speed next year. Steven Blitz is TS Lombard's chief U.S. economist.

(SOUNDBITE) (English) TS LOMBARD MANAGING DIRECTOR, GLOBAL MACRO, CHIEF U.S. ECONOMIST, STEVEN BLITZ, SAYING:

"I think the economy is going to be slow in terms of overall GDP, probably this quarter and next quarter. But after you get to mid-year growth should start to pick up."

Financials and energy led the way among sectors in the S&P, while real estate, utilities and other defensive groups were negative.

Meanwhile Facebook shares dropped following a Wall Street Journal report that the U.S. Federal Trade Commission is seeking a preliminary injunction against the social media company for how its products interact.