Wall Street Closed Higher with Hopes of Rising Rates

Wall Street Closed Higher with Hopes of Rising Rates

The stocks at Wall Street had a slightly higher closing this Monday and the yields of the US Treasury also rose with the hopes of the rates rising and the expectations of a higher infrastructure spending announcement by US President Donald Trump in his speech Tuesday night.

The futures of oil were also a mixed bag due to the rising prospect of offset reports of US production of compliance with a production cut agreement with OPEC.

While a lot of investors were thinking that Trump would be unveiling a lot of details of pro-business policies, including cash repatriation, tax reform or infrastructure spending in his address to the Congress this Tuesday night. Others, on the other hand, were not yet ready to put on new bets as they think the speech might disappoint.

Donald Trump had mentioned earlier that day that he is going to make a big statement on the infrastructure during his speech this Tuesday, but he also mentioned that the details on tax reform would not be revealed until healthcare proposal of the administration is cleared.

The Industrial Average of Dow Jones rose by 15.68 points or about 0.08 percent to 20837.44; the S&P 500 gained 2.39 points to 2,369.73 or 0.10 percent and the NASDAQ Composite also added 0.28 percent, or 16.59 points to 5,861.90.

This was the 12th consecutive record high for Dow Jones Industrial Average, its longest run since the year 1987.

The 10-year note benchmark US10YT=RR was last down 13/32 in the price to yield about 2.363% from 2.317% yield late Friday. Robert Kaplan, Dallas Fed President said that the US central bank needs to raise their interest rates in the future to avoid falling behind on the curve of inflation.

.DXY, the dollar was also up by 0.05% against a whole lot of major currencies before the speech of President Donald Trump and also expected this week are some comments from the officials of Federal Reserve.

There was a reversal in the greenback’s earlier weakness and Japanese yen has weakened indicating that a rate hike might be highly likely in the coming months.

The benchmark world stock index of MSCI was also unchanged after a record high this Thursday. The benchmark index of Europe leading 300 shares fell 0.2 percent.

In the commodity sector, Brent crude had settled down at $55.93 per barrel by 0.1 percent, while the Intermediate at US West Texas settled at $54.04 per barrel up by 0.1 percent as the global supply glut eased.

The spot gold turned down to $1251.3 an ounce by 0.4% as their inability to hold above a 200 day moving average was a clear source of some technical weakness. There was a rise in precious metal to $1263.8 earlier this day. This was its highest since 11th November.

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