DJIA 26048.51 -14.17
Nasdaq 7822.57 -0.60
S&P 2885.72 -1.01
Stocks closed marginally lower on Tuesday, taking a breather after posting strong gains to start off June.
Stocks jumped to start the day as a resolution between Mexico and the U.S. to avoid tariffs and hopes of lower interest rates from the Federal Reserve lifted investor sentiment.
The U.S. dollar was flat on Tuesday, after the Federal Reserve came in for another barrage of criticism from President Donald Trump for allegedly keeping interest rates too high.
Trump tweeted that the euro and other currencies are undervalued against the dollar, “putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue!”
Investor focus is now on the Fed’s next policy meeting on June 18-19 and what kind of signals the central bank could offer on the direction of monetary policy.
Expectations for a central bank rate cut this year rose last week after a number of Fed officials, including Chairman Jerome Powell, hinted they were open to easing monetary policy.
European Central Bank has been explicit about being ready to cut interest rates and, if need be, resume its bond-buying program to support the economy. The messsage articulated last week by President Mario Draghi was repeated Tuesday by both Bank of Finland Governor Olli Rehn and his Slovak counterpart Peter Kazimir. Rehn is touted as a possible successor to Draghi.
Gold prices steadied on Wednesday after touching a one-week low in the previous session, buoyed by concerns around U.S.–China trade relations amid expectations of an interest rate cut by the U.S. Federal Reserve.
Trump said that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees again to four or five “major points,” which he did not specify.