At least Janet Yellen didn’t do any damage during her testimony before the Senate Banking Committee. It still appears that a dovish tone has been struck at the Fed and unless there is a miraculous improvement in economic data in the coming weeks and months, the glide path to higher rates is going to be much more gradual. Remember when Fed Governors were spouting predictions of 4 or more rate increases in 2016. Well, here we are about halfway through the year and there have been exactly zero interest rate hikes to date.
As for the markets, stocks regained a little bit of what was lost at the end of yesterday’s rally as the belief that Brexit is less likely to get the vote of approval is permeating the market place. For the day, the Dow Jones Industrial Average was up 24 points to close at 17,829. The S&P 500 was up 5 points to finish the day at 2088. Gold was down $24 to trade at $1,268 per ounce, while oil was down $.52 to trade at $48.95 per barrel WTI.
Again, the UK vote is Thursday, so until then, markets will not be able to focus on anything else. Expect some volatility regardless of which way the vote goes. However, the long term ramifications of the vote are much more difficult to handicap. Often, the first move is the wrong move. Stay tuned, we’ll keep an eye on it all for you.
Have a nice evening everyone.