Highlights
Stocks advanced again Thursday as the market remains in risk-on mode as a Mideast ceasefire continues to hold. The Dow Jones industrial average gained 0.9 percent, the S&P 500 rose 0.8 percent, and the Nasdaq advanced 1.0 percent. US Treasury yields and the dollar declined while oil prices rose.
Stocks reacted favorably as bond yields declined on another batch of mixed economic reports. The news bolstered expectations for rate cuts, as did more comments from Federal Reserve officials appearing to leave the door open to rate cuts later this year. Market expectations do not call for a rate cut in July but a very large chance of a rate cut in September. Rates were also biased lower by a report in the Wall Street Journal saying President Trump was considering naming his appointee as Fed chair as early as this summer assuming he can find one sufficiently inclined to cut interest rates.
The market also drew support from White House Press Secretary Karoline Leavitt's comment that the July 8 deadline for countries to reach trade deals with the US may slip. Investors have been worried that the president will go back to the punitive tariff levels he announced on April 2.
Bank stocks were among the day's top performers after the Fed said it would propose easing bank capital requirements on certain lower-risk assets. The proposal is viewed as part of the Trump administration's wider agenda to reduce regulatory burdens on business.
Stocks reacted favorably as bond yields declined on another batch of mixed economic reports. The news bolstered expectations for rate cuts, as did more comments from Federal Reserve officials appearing to leave the door open to rate cuts later this year. Market expectations do not call for a rate cut in July but a very large chance of a rate cut in September. Rates were also biased lower by a report in the Wall Street Journal saying President Trump was considering naming his appointee as Fed chair as early as this summer assuming he can find one sufficiently inclined to cut interest rates.
The market also drew support from White House Press Secretary Karoline Leavitt's comment that the July 8 deadline for countries to reach trade deals with the US may slip. Investors have been worried that the president will go back to the punitive tariff levels he announced on April 2.
Bank stocks were among the day's top performers after the Fed said it would propose easing bank capital requirements on certain lower-risk assets. The proposal is viewed as part of the Trump administration's wider agenda to reduce regulatory burdens on business.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
