Stock investors, at least temporarily have moved past the "noise"
Stock investors, at least temporarily have moved past the "noise" coming out of Washington and Brazil, and have been buying up stocks that were recently hit during the mid-week sell-off.
The markets haven’t seen a significant pullback in several months and many insiders believe U.S. stock valuations have become somewhat expensive, especially if president Trump runs into more political complications and can not get his pro-growth strategies implemented.
The S&P 500’s last correction of -5% or more was all the way back in July of 2016. What’s more, Wednesday’s fall of -1.82% is only the second time in 2017 that the index has lost -1% or more.
Wall Street was happy yesterday to hear Treasury Secretary, Steve Mnuchin say that the Trump administration did not support the separation of investment and commercial banks. This brought an obvious sigh of relief and a bit more ease amongst the bigger banks.
There was also some movement on NAFTA as U.S. Trade Representative Robert Lighthizer told lawmakers that he was triggering a 90-day consultation period with Congress and the American public that would allow talks to begin after August 16th.
The U.S. dollar has recovered a bit from its recent tumble, but is nowhere close to the 13-year high it posted back in early-January following the Trump presidential victory.