S&P 500 VIX Futures Market News and Commentary
The S&P 500 ($SPX) on Monday closed down by -5.11 (-0.17%), the Dow Jones Industrials index ($DOWI) closed up +8.41 (+0.03%), and the Nasdaq 100 Index ($IUXX) closed down -5.76 (-0.07%). U.S. stock indexes settled mixed on Monday. Stocks still have support from expectations for the Fed to cut interest rates by nearly three times in 2019 to support economic growth. Also, stocks found support from some hopes there will be progress on resolving the U.S./China trade war after a senior Chinese trade official on Monday said U.S. and Chinese trade teams are discussing their next steps ahead of Saturday's Trump-Xi meeting in Japan after the G-20 meeting. Monday's economic data was mixed for stocks. The U.S. May Chicago Fed national activity index rose +0.43 to -0.05, stronger than expectations of +0.25 to -0.20, but the Jun Dallas Fed manufacturing activity index unexpectedly fell -6.8 to a 3-year low of -12.1, weaker than expectations of +3.3 to -2.0. Also, simmering tensions between the U.S. and Iran are negative for stocks after Iran's navy warned that another U.S. drone could be shot down if intrusions into its airspace continue. Also, the Trump administration on Monday slapped sanctions on eight senior Iranian Revolutionary Guard commanders as well as Iran's supreme leader Ayatollah Ali Khamenei, which could draw retaliation from Iran. Weakness in European stocks Monday was negative for U.S. equities as the Euro Stoxx 50 fell -0.33% Monday on economic concerns after the German Jun IFO business climate fell -0.5 to a 4-1/2 year low of 97.4. The VIX volatility index ($VIX) on Monday today fell -0.14 to 15.26% as it consolidates above last Thursday's 1-1/2 month low of 13.19%. The VIX remains far below the 5-week high from June 3 of 19.75% and the early-May 5-1/2 month high of 23.38%.