Market Commentary
Brian Stutland

What You Need to Know Before the Opening Bell on May 31, 2023

  • Fed Beige Book: The Federal Reserve will release its Beige Book report today, which will provide insights into economic conditions across the country. The report is typically released on the Wednesday of the week before the Federal Open Market Committee (FOMC) meeting, and it can provide clues about the direction of interest rates.
  • JOLTS: The JOLTS report, which measures job openings and labor turnover, will also be released today. This report is also a closely watched indicator of labor market strength, and it is expected to show that job openings remained near a record high last month.

The AI Rally: The stock market has been on a tremendous rally this year, with the S&P 500 index up more than 10%. The rally has been driven by a number of factors, including strong economic growth, low interest rates, and corporate earnings growth. However, some investors are concerned that the rally is getting ahead of itself, and that the market is in a bubble.

Traders Should Keep It Simple: With a busy week of economic data ahead, traders should keep it simple and focus on the long-term. They should also avoid making any rash decisions, and they should make sure to diversify their portfolios.

Debt-Limit Deal Heads to House Vote After Clearing Key Hurdle

  • A deal to raise the US debt ceiling has cleared a key hurdle in the Senate, paving the way for a vote in the House of Representatives.
  • The deal, which was reached by President Joe Biden and House Speaker Kevin McCarthy, would raise the debt ceiling by $480 billion.
  • The vote in the House is expected to take place on Wednesday.
  • If the deal is approved by the House, it would avert a potential default on US debt.

Stocks Waver on China Economy Worries; Bonds Gain: Markets Wrap

  • Global stocks were mixed on Wednesday as investors weighed concerns about the Chinese economy against hopes for a resolution to the US debt ceiling standoff.
  • In Europe, the Stoxx 600 index was down 0.2%, while the CAC 40 in France was down 0.3% and the DAX in Germany was down 0.1%.
  • In the US, the Dow Jones Industrial Average was up 0.1%, the S&P 500 index was up 0.2% and the Nasdaq Composite index was up 0.3%.
  • Investors were also watching for more news on the US debt ceiling, with a vote in the House of Representatives expected on Wednesday.

Fed’s Mester Sees No Reason to Pause US Rate Hikes, FT Says

  • Cleveland Federal Reserve President Loretta Mester said on Tuesday that she sees no reason to pause US rate hikes in the near future, according to the Financial Times.
  • Mester said that she believes the US economy is strong enough to handle continued rate hikes, and that she is concerned about inflation.
  • Mester’s comments come ahead of the Federal Reserve’s next meeting on June 14-15.