The major averages rose once again following the cease fire in the Middle East earlier in the week while economic data out this morning came in strong than expected. The Dow Jones Industrial Average rose over 350 points or nearly 1%. The S&P 500 rose 45 points or 0.75% closing in on record highs. The Nasdaq rose 192 points or nearly 1%.
Besides the easing tensions in the Middle East and economic data, White House spokesperson Karoline Leavitt played down the July tariff deal deadlines easing some fears in the markets. July 8 is when the so-called liberation day tariffs are set to take effect after a 90-day pause and July 9 is the deadline for an EU deal to avoid 50% tariffs.
Most sectors were higher today. In the tech space, the chips are performing well with Nvidia once gain the largest market cap stock in the US. Ironically, Micron is lower by a percent following spectacular earnings. Only Apple is lower among the large cap techs. The easing in tensions in the Middle East has given a jolt to the travel and leisure. Real Estate is one of the few underperformers today.
Interest rates are lower today even with the strong economic data. The 10-year Treasury yield fell 3.8 basis points to 4.25%, while the 2-year yield was lower by 6 basis points to 3.71%. The 30-year yield shed 2.1 basis points to 4.83%. One major concern in the bond market is criticism from President Trump toward Fed Chairman, Powell for keeping rates unchanged this year. The Wall Street Journal is reporting the president is expecting to pick and announce Powell’s replacement by September or October.
In the commodity space, oil was modestly higher settling in at $65 a barrel the last few days. Gold and bitcoin were unchanged.
The markets have become very resilient since the April correction. The S&P 500 is up more than 26% from its intraday low for the year after nearly closing in a bear market during the height of the tariff concern in April. So far, the S&P 500 is up 4% year to date.
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