June 30, 2020
This week started off positive with the Dow finishing up 2.32% on Monday and the S&P 500 and Nasdaq up 1.47% and 1.20% respectively. Stocks opened relatively flat on Tuesday morning for the final day of the quarter and a volatile month. The Dow and S&P 500 are set for their best quarter since 1998, up more than 16%. The Nasdaq was up more than 28.2% for the quarter, its best quarterly gain since 2001.
Federal Reserve Chair Jerome Powell and U.S. Treasury Secretary Steve Mnuchin are set to deliver testimony to the House Financial Services Committee today. This hearing is to address the Fed and Treasury’s response to the pandemic. Powell noted that despite some positive economic developments “output and employment remain far below their pre-pandemic levels.” He added, “A full recovery is unlikely until people are confident that it is safe to reengage in a broad range of activities.”
We will receive data on consumer confidence index today from the Conference Board. Economists are expecting an increase to 91 in June, up from May’s 86.6.
The coronavirus pandemic continues to derail states reopening plans as cases surge in Southern and Western states. In the Northeast, New Jersey will delay the reopening of indoor dining that was set to open this week. Total worldwide cases has now exceeded 10.3 million with over 505,500 deaths, a quarter of which were in the U.S.