ETF Winners & Losers Of Last Week
Zacks Investment Research | Jun 09, 2019 11:00PM ET
After being battered badly in May, the Wall Street staged a decent comeback with the start of June. This is especially true as the Dow Jones and S&P 500 witnessed their best weekly gain since late November, rising 4.7% and 4.4%, respectively, while Nasdaq saw its best performance since the week ended Dec 28 inching up 3.9%.
The solid gains came on the back of elevated chances of easier monetary policy from the Federal Reserve. The U.S. economy added 75,000 jobs in May. This is the second time in four months that job growth hit less than 1,00,000-mark. Wage growth rate also slowed down last month. This lackluster data spurred speculations about the interest rate cuts.
Per CME Group’s FedWatch tool, expectations of an interest rate cut in June rose to 27.5% from 16.7% after the jobs data release. The market is also pricing in a 79% chance of lower Fed rates by July. Aggravating trade disputes, global recession fears and bouts of weak data triggered a buzz around rate cuts.
Additionally, the Fed Chair Jerome Powell, who has suspended the three-year monetary policy tightening program this year, has signaled his openness to cut rates if needed. Powell commented at the Conference on Monetary Strategy, Tools and Communications Practice last week that “the Fed is closely monitoring the implications of the trade tensions on the economy and would act as appropriate to sustain the expansion, given a strong labor market and inflation near 2% target.” (read: Zacks Investment Research
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