Daily Market Color

Stocks, Treasurys Fluctuate with Persistent White House Drama

Heightened uncertainty was present in the final trading session of the week as investors continue to try to navigate the seemingly never-ending soap opera that is Washington, DC.  Yesterday afternoon President Trump announced he would be cancelling plans to form an advisory council on infrastructure spending, a direct result of the unwillingness of corporate executives to work with the President given his recent remarks on the Charlottesville situation.  Today, White House chief strategist Steve Bannon resigned his post following the publishing of an interview he conducted with a liberal political magazine which featured several  comments contradictory to previous White House statements.



The confirmation of the departure of Bannon briefly reversed the flight to safety witnessed in the early part of the trading session.  All three major US stock indices finished 0.10%-0.35% lower for the session after trading higher for the majority of the afternoon. Treasury prices declined in the second half of the session, reversing an early rally, as yields/swap rates are currently up 1-2 bps across the curve, with the 10-year note yield poised to finish the week right around the 2.20% level.  The US dollar drifted lower on the day amid the political drama, weakening 0.3% against major currencies.  In commodities, crude oil surged more than 3% after a report displayed a decrease in the North American rig count last week, signaling a tightening of supply.  WTI crude increased $1.50 on the day to $48.60/barrel.



Next week global financial markets will look forward to the Economic Policy Symposium taking place in Jackson Hole, where Fed Chair Janet Yellen and ECB President Mario Draghi are scheduled to speak.
Hope you have a great weekend.

Ready to start a conversation?

We offer free consultations and platform demos.

Let's Talk