|Day's Range||3,159.5613 - 3,297.3804|
|52 Week Range||3,159.5613 - 3,458.4399|
Investors are awaiting a Treasury report on China’s currency practices, but the yuan faces downside risks no matter what, says one analyst.
Unlike President Trump, I don’t believe that the Federal Open Market Committee has gone “crazy,” and neither do I believe that the trade war wasn’t a factor in last week’s stock-market decline, which felt eerily similar to what we experienced in February. To be fair, I am not surprised, because the MSCI Emerging Market Index (XX:891800) has dramatically underperformed the S&P 500 (SPX) for quite a while (see chart). Because of the expected quality of reported earnings for the third quarter, we are likely to see a serious rebound and new high in the S&P 500, especially if initial signs are that President Trump and President Xi Jinping are ready to sit down and make a trade deal that could turn out to be productive.
If I had to guess earlier this summer, I would not have expected most major U.S. stock indexes to have reached all-time highs before any concrete results in trade negotiations with China were evident. In fact, there have been records in both the Dow Jones Industrial Average (DJIA) (the retail investor’s favorite index) and the S&P 500 (SPX) (fund managers’ favorite index). Small-cap stocks and the Nasdaq Composite Index (COMP) didn’t make fresh new highs last week, but they were outperforming all year and hitting records into late August, so the advance in the market is much broader than one might have anticipated in a late-stage expansion.