Market Recap for Wednesday, July 12th, 2017
Heading into today’s session, traders were keeping a close eye on the recent Trump-Russia controversy.
Just yesterday, Donald Trump Jr. moved the markets after he tweeted his email communication with a Russia lawyer who had damaging information about Hillary Clinton. The markets freaked out with Trump Jr.’s tweets, but recovered by the end of the day.
Traders were cautious with the Trump-Russia controversy in the headlines. But caution quickly turned into optimism, after Janet Yellen released her Seminannual Monetary Policy Report to Congress.
In Yellen’s statement, she said that “the federal funds rate would not have to rise all that much further to get to a neutral policy stance.” This gave traders reason to believe that the Fed might consider being less aggressive with future rate hikes.
By the end of the day, fed funds futures were showing a 52% probability of the next rate hike being in December (down from 59%). And since traders love the idea of a slower rate hike pace and low interest rates, stocks rallied.
Here’s where the major indices ended the day:
- The S&P finished with a 0.7% gain. The S&P added 18 points and ended at 2,443.
- The DOW ended 0.6% higher. Up 123 points, the DOW closed at 21,532.
- The NASDAQ was up 1.1%. Adding 68 points, the NASDAQ finished at 6,261.
The DOW finished with a new record close, and the S&P ended with its second best close ever. The NASDAQ is still 1.0% away record highs, but has closed higher for 4 days straight.
Crude Oil (CL) finished with a 1.0% gain, closing at $45.47 a barrel. Today’s Crude Oil Inventories showed a 7.6 million barrel decrease in U.S. stockpiles versus the 3.2 million barrel decrease that was expected.
Here are tomorrow’s key reports: PPI Data and Unemployment Claims at 8:30am ET, Fed Chair Yellen Testifies at 10:00am ET, FOMC Member Evans Speaks at 11:30am ET, and FOMC Member Brainard Speaks at 1:00pm ET.
This Week’s Economic Calendar
Real Time Economic Calendar provided by Investing.com.
Have a great trading week!