Record highs are back on the menu for US indices. Both the S&P 500 and Nasdaq Composite both hit new all-time highs yesterday, the former closed above 5,500 for the first time, the latter successfully claiming 18,000 points. Tesla (TSLA) gained over 10% after better-than-expected second quarter deliveries, helping push both indices higher. The moves followed optimistic comments from Fed Chair Jerome Powell, speaking in Portugal on Tuesday, who asserted that the recent data observed suggest the US economy is returning to a disinflationary path. No comment on a time frame for the first rate cut, but encouraging words nonetheless. FOMC minutes later today may provide additional insight.
Despite the comments from multiple central bank board members early this week, currencies have remained relatively stable over the past couple of sessions. The Euro opened high on Monday following first round election results in France, the Japanese Yen on the other hand continued to fall this week, now toying with 161.5 Yen per Dollar.
Gold has also remained remarkably stable this week, closing yesterday’s session at a very familiar $2,329 an ounce. Crude oil prices experienced moderate gains on Monday, as markets braced for hurricane Beryl to disrupt production in the Gulf of Mexico. New forecasts suggest the storm is expected to weaken and travel south of major offshore operations however, abating fears of disruption and crude prices alike.
The UK will hold a general election on Thursday, coincidentally falling on Independence Day, prompting the closure of US markets. Non-Farm Payrolls swiftly follow on Friday, so volatile trading conditions are to be expected until the end of the week.
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