In the Dow's 1168+ earnings per week

It was fast. The Dow Jones Industrial Average has recovered 1168 points and more, which has earned its seven best days since November 2018, according to the Dow Jones Market Data Group, and the best five days of 2019. The Dow psychological level for many traders, before you settle just below this level on Fridays.

Nearly $ 1 trillion in market value was restored this week, with the S & P 500 gaining 4.4% and the Nasdaq Composite 3.8%.

The catalyst for the weekly trip was twofold. Federal President Jerome Powell said politicians were willing to cut rates if the trade war turned sour. "We do not know how or when these problems will be solved. We are closely monitoring the implications of these developments for the US economic outlook and, as always, we will act appropriately to support this expansion, with a strong labor market and inflation close to our target of 2% symmetric ", a- he declared in a speech.

Bond market action also indicates that the US economy may be slowing enough for policymakers to cut rates. The 10-year US Treasury yield hovers around 2.085%, its lowest level since September 2017. This results in lower mortgage rates. The rate of a 30-year fixed rate mortgage has fallen to 3.82%.

"The cash market and perhaps also today's rising stock market says the Fed will cut rates," said Nuveen's chief equity strategist Bob Doll in an interview. for FOX Business.

Giving credit to Doll's observation and Powell's comments was a surprisingly flexible employment report for May, which showed that employers had created only 75,000 fewer jobs than the expected 185,000, even as unemployment was maintained at 3.6%.

"There is a lot of historical evidence that this [a rate cut] It's a good move by the Fed, "Peter Dietrich, CEO of Fairfax Global Markets, told FOX Business.

Investors also watched President Trump, during his weeklong trip to the UK, Ireland and France, maintain his tough position on trade, which could include $ 300 billion. dollars of additional tariffs against China and 5% of Mexican customs duties potentially coming Monday. Still, there were some small green shoots that business could still be concluded.

Trump tweeted Friday: "If we are able to reach an agreement with Mexico and there is a good chance we will, they will start buying agricultural products at very high levels, starting from now, "Trump tweeted. "If we can not conclude the agreement, Mexico will start paying tariffs at the 5% level on Monday!"

While Trump said he would decide tariffs in China after this month's G20 meeting, President Xi said Friday that he had a friend in Trump a sign that the two world leaders could conclude a trade pact that would benefit both countries.

Suzanne O. Halloran is Editor-in-Chief of FOXBusiness.com and is a graduate of Boston College. Follow her on Twitter @suzohalloran