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Market Wrap June 7

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The Market Wrap for June 7: The White Knight Fed

Aaron Levitt Jun 07, 2019

Closing out last week, investors were treated to some very bad news on the trade front. Despite a deal with Mexico, President Trump announced that he was considering enacting tariffs on Mexico to pay for non-trade issues with the nation. That started this week off on poor footing. In the first few sessions, stocks wobbled, and actually moved into correction territory. Adding to pressures were the recent DOJ actions against the tech sector.

Also adding fuel to the selling pressure were overwhelmingly negative data points. Several key metrics showed declines and less-than-stellar results. This included metrics in manufacturing, housing and consumer/labor health. Poor earnings figures didn’t help either.

However, by mid-week, investors saw their white knight, courtesy of the Federal Reserve. Several speeches from Fed governors, including Jerome Powell, hinted that the central bank would do everything in its power to keep the economy and stock market rolling, including the possibility of rate cuts. As a result, traders reversed course mid-week.

All in all, stocks continued their hefty pace of volatility, and sailing the market was not smooth in the slightest.

Be sure to check out our previous Wrap here, when the shortened week brought hefty losses.

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