June 13 New York
The DJIA rose by 92.80 points to 21328.47 while the S&P 500 Index gained by 10.96 points to 2440.35. The Nasdaq Composite Index added by 44.90 points to 6220.37. U.S. stocks snapped a two-day slide to close at fresh records as technology shares rebounded from the worst drop of the year. The dollar weakened and Treasuries were steady as the Federal Reserve policy meeting kicked off. The Dow Jones Industrial Average and the SP 500 ended at all-time highs. European and emerging-market equities advanced. Sterling rose for the first time since the U.K. election. Ten-year Treasury yields held near 2.21 percent and the U.S. dollar slipped versus major peers before the Fed is projected to raise interest rates Wednesday. The rate of the U.S. dollar to the yen was 110.07. Fed policy makers are expected to raise their benchmark interest rate for the second time this year on Wednesday. Because that is widely anticipated, the more market-sensitive elements of FOMC will relate to signals on future policy – either the path for further rate hikes or plans to cut the $4.5 trillion balance sheet. Central banks in Japan, Switzerland and Britain are also supposed to have their own policy decision meetings this week. West Texas Intermediate crude futures rose 0.8 percent to settle at $46.46, as OPEC reported rising production, offsetting expectations of a further decline in U.S. stockpiles. Gold slipped 0.1 percent to $1268.50, its fifth day of losses and the longest losing streak in a month as investors anticipate Fed rate hikes. The rebound in tech shares carried through to U.S. trading, affording investors a break from the selloff as the sector resumed its rise as the key driver of global equity gains. In politics U.S. Attorney General Jeff Sessions will likely face pressure to explain his role in the firing of James Comey and contacts that he and associates of President Donald Trump had with Russian officials, with markets looking for any indication that the administration’s business-friendly agenda will be delayed. On June 8 the House of Representatives voted to replace Dodd-Frank President Donald Trump has pledged to repeal with the Financial CHOICE Act, which will reduce significant pieces of Dodd-Frank. The CHOICE Act, however, is not expected to pass the Senate inits entirety. In a 150 page report released Monday by Treasury Secretary Steven Mnuchin, the administration calls for dismantling strict regulations overseeing Wall Street banks. Treasury Secretary Mnuchin believes the Volcker Rule is deterimental to the sound growth and expansion of U.S. financial industry though he admits the necessity of some concepts of it to protect U.S. taxpayers.
