Bulls Remain in Charge…..

U.S. equities finished in the green, notching additional weekly gains and record highs, with continued rate cut expectations fueling the rally courtesy of the Congressional monetary policy testimony by Fed Chairman Jerome Powell, which was further aided by tame inflation numbers. Treasury yields were unchanged and the U.S. dollar was lower, while gold rose and crude oil prices were mixed. In equity news, Illumina cut its guidance and offered a Q2 warning, while shares of Johnson & Johnson suffered following a report of a criminal probe by the U.S. Justice Department.

The Dow Jones Industrial Average (DJIA) jumped 244 points (0.9%) to 27,332, the S&P 500 Index gained 14 points (0.5%) to 3,014, and the Nasdaq Composite rose 48 points (0.6%) to 8,244. In light volume, 670 million shares were traded on the NYSE and 1.8 billion shares changed hands on the Nasdaq. WTI crude oil inched $0.01 higher to $60.21 per barrel and wholesale gasoline was down $0.01 at $1.98 per gallon. Elsewhere, the Bloomberg gold spot price increased $11.08 to $1,414.89 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six

The Producer Price Index (PPI) showed prices at the wholesale level in June matched May’s 0.1% month-over-month (m/m) gain, above the Bloomberg forecast of a flat reading. The core rate, which excludes food and energy, was 0.3% higher m/m, above expectations calling for it to match May’s unadjusted 0.2% increase. Y/Y, the headline rate was 1.7% higher, north of projections of a 1.6% rise and compared to May’s unadjusted 1.8% increase. The core PPI rose 2.3% y/y last month, topping estimates of a 2.1% gain and matching May’s unrevised rise.

Treasuries were flat, as the yields on the 2-year and 10-year notes, along with the 30-year bond, were unchanged at 1.85%, 2.12% and 2.64%, respectively.

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