S&P 500 rebounds as Fed eases inflation concerns
The S&P 500 was back in the green on Wednesday, as comments from a key official in the Federal Reserve helped ease inflation worries.
U.S. indices have been sluggish for most of the May thus far, due to rising inflation as well weaker than expected economic data pushing the Dollar lower.
Despite this, Fed Vice Chair Richard Clarida today stated that the Central Bank has the means to navigate a “soft landing”, should consumer prices continue to rise.
Markets responded to his words, with Gold prices falling in today’s session, as traders moved away from the haven asset.
Both the Dow Jones, S&P 500 and NASDAQ were up between 0.03% – 0.56% as of writing.
Oil prices stabilize on inventories data
Oil prices consolidated in today’s trading session, as crude inventories data helped end a 2-day rally.
So far this week, WTI prices rose from $61 – $66, as demand for the energy rose due to more countries beginning to open their doors for tourism this summer.
The European Union last week confirmed that they will be allowing vaccinated tourists to enter the continent without needing to quarantine, providing they have had a COVID vaccine.
Despite this, today’s data shows prices held at the $66.56 resistance level, as data showed that inventories decreased by 1.7 million barrels last week.
Markets now wait to see what OPEC+ will do at their next meeting this coming Tuesday June 1st.
Cummings testimony sends FTSE 100 marginally lower
Today Dominic Cummings, the former Chief Adviser to the British Prime Minister, testified before MP’s, criticizing his former boss and his handling of COVID-19.
Cummings today testified that PM Boris Johnson, was “unfit for the job” of Prime Minister, and responsible for “thousands of deaths” due to decisions taken during the pandemic.
In his statement he said, “I would like to say to all the families of those who died unnecessarily how sorry I am for the mistakes that were made and for my own mistakes at that“.
The news comes as Britain currently seems to have got it right, in relation to COVID-19 vaccinations, with over 38 million Brits receiving their first jab.
The FTSE 100 closed marginally lower on today’s claims.
Quote of the day – “A good trader knows when to admit when they are wrong” –Jack D. Schwager
Senior Market Analyst