Calm was restored overseas as there were no surprises with the French presidential election, with pro-European Union candidate Emmanuel Macron winning in the second round. Subsequent to the election, the VIX index of volatility closed at its lowest level in over two decades. The U.S. dollar, meanwhile, broke to a six-month low, continuing to benefit international investments (in U.S. dollar terms). Given the strong labor market, it is likely the Federal Reserve will raise short-term rates by 25 basis points at their June meeting.
Market Flash Report - June 2017
The S&P 500 and Nasdaq Composite continued to hit new record highs in another month of gains for stocks. Earnings growth at U.S. companies in the S&P 500 index grew last quarter at the fastest pace in nearly six years, which may help investors justify elevated valuations.