US Stocks Reach All-Time High
Stocks rallied on Wednesday and the Dow Jones hit an all-time high after Federal Reserve chair Janet Yellen said the US economy was strong enough to withstand a gradual increase in interest rates over the next few years. The Dow rose 0.6% to 21,532.
The Bank of Canada raised interest rates for the first in seven years
There could be one more rate hike on the way this year, according to overnight index swaps, there is an 80% chance of an increase in rates by December.
Investors Are Taking More Risk
Traders are remaining calmer than normal. According to the Vix, a measurement of volatility in the S&P 500, anxieties are at historical lows. The lack of fear has caused equities to soar to new heights this year as investors ignore geopolitical risks in favour of the sentiment that an increase in corporate earnings will boost stock prices higher.
Earnings Season Has Kicked Off
Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC) & Co. announce second-quarter results before market open Friday, July 14. Over the last few months, financial stocks have rallied since Donald Trump announced that the Dodd-Frank Act would be rolled back.