|Day's range||1,522.42 - 1,535.32|
|52-week range||1,266.92 - 1,742.09|
THE TRADER Bad news poured down this past week, yet the market kept on dancing in the rain. There was bad geopolitical news as the U.S. blamed Iran for attacking two tankers carrying petroleum products.
With the exception of a two-month period in January and February, the Russell 2000 index has been declining steadily versus the S&P 500.
FT subscribers can click here to receive Market Forces every day by email. Equity markets are pushing towards a test of their April and early-May peaks. Optimism about a US and China trade deal has faded, with risk assets leaning heavily on the bond market's call for central bank easing in the coming months.
Can people please stop talking complete, unmitigated claptrap on the subject of President Donald Trump, Mexican tariffs and the U.S. economy? The panic over the last few days about possible Mexican tariffs is even more ridiculous than the panic we had last month about the China tariffs — and that was bad enough. The S&P 500 is now higher than it was just before Trump shook his little fist at the Mexicans.
The S&P 500 is close to breaching its 200-day moving average. That would trigger a closely watched sell signal, potentially setting off a broader alarm, selling pressure, and further falls.
One of the highest trading-volume days on U.S. stock markets each year falls in late June, when FTSE Russell rebalances its closely followed collection of U.S. equity indexes
Stocks in the Russell 2000 Index were among the hardest hit in a broad equity rout as traders dug in for a protracted dispute between the U.S. and China. A tumble of as much as 1.9% had the gauge poised to close below its 50-day, 100-day and 200-day moving averages for the first time since the market recovered from last year’s sell-off. The rationale was that smaller U.S. companies that get a lesser portion of their sales from overseas won’t be as hurt by tariffs.
STOCK ALERT 3:30 p.m. At 12:01 a.m. ET Friday morning, tariffs on $200 billion of Chinese goods imported to the U.S. rose to 25%, sending stocks down at Friday’s open. A presidential tweet suggesting that negotiators from the world’s two largest economies were in no rush to reach a deal pushed them further into the red.
Renewed trade fears weigh on stocks, Liu He is still expected in Washington but an end to trade disputes is far from likely.
Small-cap stocks are thought to be more exposed to the U.S. economy than their larger counterparts, so their rise might indicate that investors are more worried about economic growth abroad than at home.