A lack of market-moving economic data kept stocks trading sideways within a narrow range this week, but the slow pace still pushed major stock indices to new record highs, with the Dow reaching the 23,590 marks on Tuesday.
Despite a strong JOLTS job openings figure earlier in the week, which continued to spread positivity about the robust labor market, investors remained unenthusiastic. However, the rising oil price, prompted by an escalation of palace politics in oil-rich Saudi Arabia, eased some of the worries about inflation.
Last week’s ambitious tax package from the GOP prompted analysts to comment it could pave the way for a fiscal stimulus that could add as much as 0.6 points to the next year’s GDP, but it continued to worry fiscal conservatives as the plan may add some noticeable deficit beyond the reconciliation directives of Congress.
As President Trump’s five-country Asia tour commenced, investors braced themselves for some word of war with North Korea, but some sensible – strong but diplomatic – rhetoric kept the markets from going into a tizzy.
All in all, while the hawkish momentum of stocks slowed down, it still reflected the bullish bias in the economy.
Be sure to check out our previous week’s edition here, in which markets cheered the new Fed Chair.