S&P 500; US Indexes Fundamental Forecast – June 30, 2016

U.S. stock indices trended higher all session on Wednesday, helped by gains in oil prices, as global equity markets continued to recover from their post-Brexit plunge. According to traders and analysts, investors have come to realize that this is a potential disaster for the UK and Europe and not necessarily the U.S. although a Fed official warned of a weaker U.S. economy.

Crude oil prices surged more than 3 percent and neared $50 a barrel after EIA weekly crude inventories showed a greater-than-expected drawdown of 4.05 million barrels. Gains in oil were also supported by expectations of near-term supply shortages because of problems in Norway and Venezuela.

Energy and healthcare stocks led all S&P 500 advancers as all sectors rose in the afternoon trade. The S&P 500 Index rose 1 percent.

The Dow Jones Industrial Average added more than 250 points in the afternoon trade and also moved back into positive territory for the year along with the S&P 500 Index.

In U.S. economic news, pending home sales fell a more-than-expected 3.7 percent in May from the prior month, of a 0.2 percent year-over-year decline and the first annual drop in two years.

Consumer spending rose 0.4 percent in May as expected. Personal income increased 0.2 percent, on target with the estimate.

The Fed’s preferred inflation measure of personal consumption expenditures (PCE) price ex-food and energy rose 0.2 percent last month, or 1.6 percent over the 12 months through May. The Fed would like to see this figures at 2.0 percent or higher.

Treasury yields backed off their session highs as investors priced in a possible rate cut in September. Federal Reserve governor Jerome Powell also said on Tuesday that Brexit could pose a threat to the U.S. economy.

FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

Upcoming Economic Events that you should be monitoring:

Thursday, June 30, 2016                              

Government Bond Auctions

Jun 30 11:10 Italy Holds bond auction