Volatility is back as we approach the quadruple witching day. While major indices such as the S&P 500 and Nasdaq pulled back from their record highs, the laggard Dow Jones powered ahead, rising more than 0.8%. This comes as investors digest a string of economic data.
💼Job Data and Home Construction🔒
The US jobless claims saw a modest decline but are still higher than expected, reflecting evidence of further cooling in the labour market.
New home construction also dropped 5.5% in May, and the previous April reading was revised lower, cementing the ongoing idea of a slowdown in economic activity.
🍣Good news on inflation🗽
The Council of Economic Advisers also released some positive news on inflation. With solid wage growth and a slower climb in grocery prices, Americans have firmer purchasing power.
In perspective, while grocery prices rose by 1% annually, average hourly earnings rose by 4.1%. An exciting calculation is that an American will take around 3.6 hours of work to buy a basket of grocery staples compared to 3.7 hours in May last year.
📪What’s on the menu today?📤
1) At 9.45 pm., we will have S&P 500 Global Services PMI for May.
2) At 10 pm, we will have Existing Home Sales data.
It is 21 June, Friday at 8.50 am in Singapore and 8.50 pm in New York. What a cooling and rainy morning in Singapore. We hope all friends have a delightful and chill day as we move to the week’s last trading day.
Cheers.
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