Having sold off following the Fed’s announcement last week, US equity markets have since bounced, recovering most of their losses.
Of note in the market snapshot, the S&P500 rallied again yesterday closing higher for the third time in the past four trading sessions and reaching another record high (closing at 4,266). On this occasion the market was led by financials (+1.2 per cent) with support from some of the tech and other cyclical areas of the market (e.g. communication services, energy & industrial sectors).
The Nasdaq also reached a new closing high. The key question, therefore, is: What’s next? Will this rally be sustained? Or is it about to fade/reverse?
Key events and data today include US personal income and spending (for the month of May, due 1:30pm London time). Various central bankers are giving speeches today, including the ECB’s Lagarde as well as the Fed’s Mester and Rosengren.