Market Update 6/30
Here is a summary of the key points:
- U.S. index futures are pointing to gains at the open of the final session of Q2 and H1 2022. This indicates stocks may continue their upward trend.
- The major stock indexes – Dow, S&P 500 and Nasdaq – are all up so far this year, driven by hopes that the Fed may slow interest rate hikes and the economy may show signs of recovery.
- Investors will be watching the personal income and spending report due later today, specifically the inflation component known as core PCE. This is a key inflation gauge for the Fed and will provide clues on the trajectory of inflation.
- If core PCE comes in higher than expected, it could raise concerns that the Fed will need to maintain an aggressive stance on rate hikes, weighing on stocks. But a softer reading may support the view that inflation is peaking and the Fed can slow rate hikes, boosting stocks.
In summary, traders are cautiously optimistic at the open but awaiting the key inflation data later today that will provide more direction for stocks. Hope this helps! Let me know if you have any other questions.
admin