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US Stock Market major Indices close at record highs
Major indices closed at new highs in a record-breaking day for United States stock markets on June 3, with a number of factors influencing investors. The S&P 500 hit a record high at market open with boosts from technology and healthcare stocks, and things only got better from there. The Dow Jones, S&P 500, and Nasdaq all set new closing high records, with the S&P 500 and Dow showing their best June performance in decades. The Dow Jones Industrial Average closed up 179.32 points, or 0.67 percent higher at 26966.00 points. The S&P 500 closed 22.81 points higher, or up 0.77 percent at 2995.82 points, and the Nasdaq Composite finished the day up 61.14 points or 0.75 percent at 8170.23 points. President Donald Trump celebrated the gains on Twitter saying, “S&P 500 hits new record high. Up 19% for the year. Congratulations!” Anticipation and Speculation The United States and China have agreed to hold off on new tariffs while they open a new round of negotiations, easing investor sentiment. Investors are anticipating the Federal Reserve will cut interest rates over concerns about slowing global economic growth due to trade tensions, and weaker than expected jobs data from June. Trump said on Twitter, “China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. We should MATCH” Trump has been critical of the Fed and implied it is and hurting the markets and the economy by not cutting rates. Nominees The president said on Twitter that he plans to nominate two economists for the Feds Board of Governors, Christopher Waller and Judy Shelton, who will need to be confirmed by the Senate. Waller is a former professor and Chair of Economics at Notre Dame, and currently the Executive Vice President and Director of Research at the Federal Reserve Bank of St. Louis, Missouri. Shelton was an adviser on Trump’s presidential campaign in 2016 and is a founding member of the board of directors of Empower America. She also served on the board of directors of Hilton Hotels, and currently the U.S. Executive Director at the European Bank of Reconstruction & Development. Adding to investor expectations that the Fed will cut interest rates, was the National Employment Report released from ADP on June 3. The ADP report said U.S. private employers added 102,000 jobs in June, falling far short of the 158,000 expected by many economists. Stock markets had an early close at 1 p.m. on June 3, and are closed on July 4 for the holiday. Investors are looking toward the Labor Department's official jobs report to be released on June 5.