VIDEO: June 19 – Market Update

  • Stocks ended the week mixed, as the DJIA was up slightly, the S&P 500 barely moved and NASDAQ ended lower for the second consecutive week
  • Midweek saw the DJIA set another record high as it pushes its weekly upward trend to four, while NASDAQ has suffered two weekly declines
  • Most of the week’s news centered around the Federal Reserve’s widely anticipated move to raise short-term interest rates, while also outlining plans to reduce the size of their $4.5 trillion balance sheet
  • Fed watchers quickly moved their attention to when the next rate hike might be, as the Fed hinted at a possible third rate hike in 2017. The fed funds future market, however, points to the most likely time for the next rate hike to be in March of next year, with an implied probability of about 50%. The implied probability of a rate hike in December sits around 43%
  • The yield on the 10-year US Treasury note fell 5 basis points to 2.16% from 2.21% a week ago
  • The price of West Texas Intermediate crude oil declined to $44.70/barrel from $45.50 last week. While oil prices rebounded on Friday after hitting their lowest level of 2017, it is still four weekly losses in a row – the longest such streak of losses in almost two years
  • Volatility, as measured by the Chicago Board Options Exchange Volatility Index, edged up slightly to 10.9 from 10.0 a week ago