The S&P 500 has been rising in June regardless of the Fed’s stance on inflation
- The S&P 500 Index is up 2.2% in the month of June.
- The Federal reserve rate that was expected in their June meeting was mostly just to play catch-up to the market.
- Inflation is not worrying the market as long as it is staying within the markets’ expectations.
Confidence is on the rise
- Consumers are finally confident in the market as the Conference Board’s consumer confidence index climbed to its highest levels since February of 2020.
- This confidence rise is even higher than expected and much higher than May.
- The rise in confidence can be largely attributed to the falling COVID-19 cases around the country along with record high asset prices.
- These economic indicators demonstrate that economic recovery in the second half of 2021 is likely.
The Start of the Third Quarter
June 1st marks the halfway point in the year and the market did well in June for the fifth month in a row.
Along with this, the S&P 500 has been growing for five consecutive quarters and has had historic gains in that span growing more than five percent for only the second time.
- The always trending app Robinhood has filed for an initial public offering.
- Robinhood generated $522 million in revenue in the first quarter of 2021, quadrupling its revenue from a year earlier.
- Mostly known for trading “meme stocks” and cryptocurrencies, the company looks to have staying power as it lists itself on the NASDAQ.
- However, the company is still answering for its January trade restrictions mostly focused on GameStop.
Higher Gas Prices to be Expected into 4th of July Weekend
- As OPEC countries are trying to meet the new surge in demand for oil, gas prices country-wide are rising.
- This rise is caused by many reasons: higher crude-oil prices and growing demand as workers return to their offices and commutes.
- This is not likely to deter too many people from travelling however as many have pent-up energy and desire to travel from the lockdown.
Wall Street Journal