A “deal” with Mexico late Friday set the stage for a rally this morning, and Nasdaq led the way. After about a 7% correction in May, the bulls have gotten their mojo back here in June and stocks are within shouting distance of all-time highs once again. By the way, for those keeping score, a couple of those 5% plus moves down in a calendar year for stocks are par for the course, but with the possibility of trade wars and slowing economies market participants were particularly on edge in May and appear to be caught a little flat footed by the past week’s bullish tone.
By the close, the Dow Jones Industrial Average was up 78 points to finish the day at 26,062. The S&P 500 was up 13 points to close at 2,886. Gold was down $13 to trade at $1,332 per ounce, while oil was down $.66 to trade t $53.33 per barrel WTI.
Of course, besides trade deals, the main reason stocks have rallied over the past several trading sessions is the belief that the Fed stands ready to lower interest rates as soon as this summer, if only for insurance purposes. Last week’s disappointing trade reports certainly “fed” the easing narrative. Let’s see of the bulls can hold the high ground this week. Stay tuned.
Have a nice evening everyone.