Daily Market Color June 13, 2017Stocks Recover, Treasurys Slide with FOMC Announcement on Horizon US stocks rebounded from their two-day slide today as technology shares regained favor amongst investors. Both the DJIA and S&P 500 finished up roughly 0.45% for the session while the Nasdaq recorded gains near 0.75%. US Treasurys experienced a modest selloff as yields/swap rates increased 1-4 bps across the curve, with the yield on the 10-year note hovering above 2.21%. At the conclusion of tomorrow’s FOMC meeting, the Fed is expected to announce a 25 bps increase to the benchmark borrowing rate and reaffirm its forecast of three total rate hikes in 2017, while underscoring the caution associated with recent sub-par inflation data. Markets will also pay close attention to the Fed’s comments surrounding its plan to unwind the central bank’s $4.5 trillion balance sheet, as continued stagnant growth in consumer price data could alter median forecasts to begin balance sheet normalization in September. The US dollar edged 0.2% lower on the day, highlighted by a 0.8% decline against the pound which reversed yesterday’s 0.7% gain. WTI crude oil futures slid below $46/barrel today after the American Petroleum Institute reported inventories rising by 2.75 million barrels, a significant deviation from the expectation of a 2.45 million-barrel drawdown in tomorrow’s release from the Energy Information Administration. US economic data reporting was light again today, highlighted by producer prices which remained unchanged during the month of May after rising 0.5% in April. Excluding food and energy however, prices increased 0.3% last month (+0.2% expected), as energy declined 3% over that span. Compared to a year earlier, headline producer prices gained 2.4% while the PPI excluding food and energy rose 2.1%.