S&P 500 Index Futures Market News and Commentary
U.S. Stocks Settle Higher on ECB Stimulus Prospects and Trump-Xi Meeting
The S&P 500 ($SPX) on Tuesday closed up by +28.08 (+0.97), the Dow Jones Industrials index ($DOWI) closed up +353.01 (+1.35%), and the Nasdaq 100 Index ($IUXX) closed up +108.88 (+1.45%). U.S. stock indexes moved sharply higher Tuesday and posted 6-week highs on the outlook for additional ECB stimulus along with an easing of U.S./China trade tensions. ECB President Draghi said Tuesday that "additional stimulus will be required" if the economic outlook doesn't improve and that "lingering" risks are strengthening the case for action. Stocks extended their gains Tuesday morning after President Trump said he had a "very good" phone conversation with Chinese President Xi Jinping and that he will hold an "extended meeting" with him at the G-20 meeting next week in Osaka, Japan. Tuesday's U.S. economic data was also positive for stocks after May housing starts fell by only -0.9% to 1.269 million (stronger than expectations of 1.239 million) and May building permits rose +0.3% to 1.294 million, slightly stronger than expectations of +0.1% to 1.292 million. Stock prices fell back from their best levels Tuesday after a report said President Trump back in February explored the legality of demoting Fed Chair Powell to Fed Governor after Mr. Trump was upset with the Fed's action to raise interest rates. Tuesday's stock rally caused the VIX volatility index ($VIX) to fall to a 3-1/2 week low of 14.62% and the index finished Tuesday down by -0.20 to 15.15%. The VIX remains far below the 1-month high from June 3 of 19.75% and the early-May 5-1/4 month high of 23.38%.
The S&P 500 ($SPX) on Tuesday closed up by +28.08 (+0.97), the Dow Jones Industrials index ($DOWI) closed up +353.01 (+1.35%), and the Nasdaq 100 Index ($IUXX) closed up +108.88 (+1.45%). U.S. stock indexes moved sharply higher Tuesday and posted 6-week highs on the outlook for additional ECB stimulus along with an easing of U.S./China trade tensions. ECB President Draghi said Tuesday that "additional stimulus will be required" if the economic outlook doesn't improve and that "lingering" risks are strengthening the case for action. Stocks extended their gains Tuesday morning after President Trump said he had a "very good" phone conversation with Chinese President Xi Jinping and that he will hold an "extended meeting" with him at the G-20 meeting next week in Osaka, Japan. Tuesday's U.S. economic data was also positive for stocks after May housing starts fell by only -0.9% to 1.269 million (stronger than expectations of 1.239 million) and May building permits rose +0.3% to 1.294 million, slightly stronger than expectations of +0.1% to 1.292 million. Stock prices fell back from their best levels Tuesday after a report said President Trump back in February explored the legality of demoting Fed Chair Powell to Fed Governor after Mr. Trump was upset with the Fed's action to raise interest rates. Tuesday's stock rally caused the VIX volatility index ($VIX) to fall to a 3-1/2 week low of 14.62% and the index finished Tuesday down by -0.20 to 15.15%. The VIX remains far below the 1-month high from June 3 of 19.75% and the early-May 5-1/4 month high of 23.38%.
