US Equity Handover: Stocks Storm Back on Rising Rate Cut Hopes, Fading Mexico Tariff Fears
Matt Weller, CFA, CMT June 4, 2019 9:55 PM
See a summary of the top stock themes and trends from today's US session!
- US indices surged higher today after Fed Chairman Powell left the door open for a rate cut, with most major indices rallying back above their 200-day moving averages.
- Higher-yielding REITs (XLRE) and utilities (XLU) were the weakest sectors, while technology stocks (XLK) led the way higher, gaining over 3%.
- Two developments prompted traders to breath a tentative sigh of relief on US-Mexico trade tensions: Mexico’s President Lopez Obrador expressed confidence in making a deal to avert US tariffs ahead of June 10. Separately, Senate Majority Leader McConnell stated there was “not much support” for tariffs on Mexico.
- FAANG stocks bounced back after yesterday’s litigation-driven drop: Facebook (FB) +2.0%, Amazon (AMZN) +2.2%, Apple (AAPL) +3.7%, Netflix (NFLX) +5.2%, & Alphabet (GOOG) +1.6%.
- See why we’re keeping a close eye on developments in the rare earth metal markets!
*There are no high-impact corporate announcements expected during tomorrow’s Asian session.*
*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.
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