Stock Market Today: Market Meltup Continues as China Trade Deal Nears
Premarket trading shows stocks set to continue higher based on three main factors: trade deals, lower taxes and lower interest rates.
Stocks appear set to continue higher today based on three main factors:
- A trade deal with China appears to be close (and maybe with India, too)
- The tax bill would lower taxes on corporations and increase their profits
- Fed rate cuts in 2024
The Fed's preferred gauge of inflation, the PCE, or Personal Consumption Expenditures Price Index, was reported this morning.
According to the Bureau of Economic Analysis, May's PCE rose 0.1%, and 2.3% year-over-year, in line with expectations. However, Personal Income and Personal Spending were weaker than expected, dropping 0.4% and 0.3%.
How did stock futures react? They dropped but remain higher on the day.
Overall, stock futures are higher, bonds are mixed, and gold is lower.
Crude continues to bounce around the $65 level we've been discussing all week.
Later this morning, the University of Michigan will release its Consumer Sentiment index.
