Former Goldman Sachs International Vice Chairman Bob Hormats told FOX Business that the highly anticipated summit between President Donald Trump and North Korean leader Kim Jung Un could swing the markets into positive territory.
“I think a good outcome would be positive for the markets because it would create more stability in the region,” Hormats said in an interview on “Countdown to the Closing Bell.”
Easing tensions and finding an agreement by both countries would be seen as a positive step in the eyes of the international community. However, Hormats said the markets would react negatively if the summit results in a display or threat of military force.
“If it’s a negative and there’s more sabre rattling on both sides, the markets would probably take it badly,” he said.
The Dow Jones Industrial Average extended its winning streak Friday, as investors shrugged off trade worries at the start of the G-7 summit between the U.S. and allies. The blue-chip index gained 75 points to about 25,317.
“So far the markets don’t seem to be overly disrupted or overly positive one way or another. The markets are looking a lot of other things more than this,” Hormats said.