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After the new trade deal between Canada and the United States stuck, the stock markets closed higher as investors cheered for it.

Canada has now joined the trade deal with the United States after Mexico. Now, the three countries have successfully replaced NAFTA (North American Free Trade Agreement) with USMCA. The USMCA, the name of their new agreement, expanded to the United States-Mexico-Canada Agreement.

After the deal, most of the shares have reacted positively on the board. On Monday, Dow Industrial Average advanced by 192.90 points and reached 26,651.21 while outperforming Chevron and Boeing whereas, Boeing stock gained 2.8 percent.  Also, S&P 500 traded 0.4 percent up at 2,924.43 with advancement in shares like industrials, materials, and energy.

On the other hand, Nasdaq Composite went down 0.1 percent with closing at 8,037.30. After following the news, the shares of General Motors and Ford gained 1.6 percent and 0.8 percent correspondingly.

The director at FBB Capital Partners, Mike Bailey remarked that a trade war is the biggest risk for any country and the States has lowered that down. He also noted that markets are going on really fast at the moment and moving ahead of their times.

In the agreement, Canada has capped automobile exports effectively and given more access to the U.S dairy sector. The two countries along with Mexico would sign an agreement in the November-end.

Even after striking a new deal with Canada, the United States is still battling a trade war with China as both countries have sanctioned tariffs on various goods worth billions of dollars. It might worsen tensions in the near future and will be shaped in an advanced trade war.

But the trade deal with Canada is quite big news to cherish for. This move will surely bring benefits to both countries.