- June 26, 2019
- Market Commentaries
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2019.06.26 Market Commentary
The major indices all finished last week with gains of over 2%, with the Dow +2.4%, the S&P 500 +2.2%, and the Nasdaq +3.0%. Last week’s results extended the market’s strong run in June, which has seen stocks recover in the wake of May’s steep decline.
US stock indexes jumped more than 1% on Tuesday after the leaders of the US and China agreed to meet at the G20 global economic summit scheduled for June 28th and 29th in Japan. Presidents Donald Trump and Xi Jinping planned to make a fresh attempt to reverse the recent escalation in the trade dispute between the world’s two largest economies. (www.johnhancock.com; 06/24/2019)
Last week, the Fed kept interest rates unchanged, but comments from Fed Chairman Jerome Powell lifted market expectations that a potential rate cut could come as soon as July 31st, when the Fed concludes its next policy meeting. However, yesterday the president of the Fed Bank of St. Louis said it was too early for a rate cut, which spurred the market downward. It is evident the market wants the Fed to lower interest rates to offset the slowdown in economic growth. (www.federalreserve.gov; 06/19/2019)
There was also nervousness regarding Iran and the potential response to the downing of an unmanned drone on Thursday. President Trump backed away from taking military action against Iran, saying the counterattack was not proportionate to shooting down a drone. (www.investors.com; 06/21/2019)
China continues to be the elephant in the room and the scheduled 90-minute meeting during the G20 summit should give us direction on further trade discussions.
I hope these comments are helpful.
Jeremiah Patterson, CFP®
Copelin Financial Advisors
514 Brooks Street
Sugar Land, TX 77478
Phone: 281 240-2902
Fax: 281 240-2856
Securities offered through ProEquities, Inc., a Registered Broker-Dealer and Member FINRA & SIPC. Advisory services offered through Investment Advisors, a division of ProEquities, and Harvest Investment Services, LLC, Registered Investment Advisors. Copelin Financial Advisors, Inc and Harvest Investment Services, LLC are independent of ProEquities, Inc.