Published: Sun, June 23, 2019
Markets | By Otis Pena

Markets Right Now: Stocks down slightly after hitting record

Markets Right Now: Stocks down slightly after hitting record

The S&P 500 approached a record high on Wednesday after the Federal Reserve signaled potential interest cuts later this year, reassuring investors anxious that the U.S.

Buoyed by growing confidence the Fed will cut rates, and by hopes of an end to the U.S.

Another factor driving demand for U.S. Treasurys is that government bonds in Germany and other countries are returning negative yields, making U.S. bonds more attractive.

"I do think that today's move is due to yesterday's Fed move", said James Ragan, director of wealth management research at D.A. Davidson.

Money markets are pricing in three Fed rate cuts before year-end and are tipping as many as five cuts through mid-2020. The S&P 500 has gained 6% in June. The stock was 1.4% higher.

While the gains were broad-based, petroleum-linked shares were especially buoyant as oil prices rallied in the wake of heightening tensions between the United States and Iran after Iran shot down a U.S. spy drone.

Major stock indexes in Europe also finished higher.

The Dow Jones Industrial Average rose 161.38 points, or 0.61%, at the open to 26,665.38.

U.S. struck Iranian military computers this week
They also said Supreme Leader Ayatollah Ali Khamenei was against talks but that they would convey the USA message to him. The United States has also blamed Iran-backed groups for a string of mortar and rocket attacks on USA assets in Iraq.

Used vehicle retailer CarMax rose 3.2% after it blew past Wall Street's fiscal first quarter profit and revenue forecasts.

"There is a ideal mix of ingredients for gold's rush to the top - a weak macroeconomic environment, low bond yields, soft dollar and rising geopolitical tensions", said Howie Lee, an economist at OCBC Bank. The iPhone maker is viewed as a major potential casualty in Trump's trade war, should it worsen.

The Bank of Japan also kept monetary policy steady but Governor Haruhiko Kuroda signaled readiness to ramp up stimulus as global risks cloud the economic outlook, joining US and European central banks in dropping hints of additional easing.

After Powell's comments, the USA 10-year Treasury yield slipped as low as 1.97 percent, the first time the benchmark has fallen below 2 percent since November 2016. China's Commerce Ministry spokesperson, Gao Feng, said that trade representatives from the two nations will meet. The leaders of the USA and China are meeting next on trade.

"The big thing for us was in the traditional IPO, it's the company that's offering shares, you might raise, you know, a billion dollars or something like that", Slack chief executive Stewart Butterfield said Thursday during an interview on CNBC.

Benchmark 10-year USA notes last rose 1/32 in price to yield 2.0249%, from 2.027% late on Wednesday, after falling to 1.974% earlier.

Signage is seen outside the entrance of the London Stock Exchange in London, Britain.

Japan's Nikkei 225 index lost 1.0% to 21,258.64 and the Hang Seng in Hong Kong dropped 0.5% to 28,476.75 as protesters once again took to the streets. Only a few weeks ago, the price of USA crude was in a correction, what Wall Street calls a drop of at least 20% from a recent peak.

Like this: