The Dow and broader U.S. stock market traded in positive territory on Friday, as investors turned their attention to an upcoming meeting between President Trump and China’s Xi Jinping,
The meeting, which is scheduled for Saturday in Japan, wraps up a highly volatile quarter that required central-bank intervention to ease pressure off the stock market.
Dow Edges Higher; S&P 500, Nasdaq Follow
The broad S&P 500 Index of large-cap stocks rose 0.6% to 2,941.76, with financials leading the way.
The technology-focused Nasdaq Composite Index advanced 0.6% to close at 8,006.24.
A measure of implied volatility known as the CBOE VIX rose by more than 16% during the quarter. Back in May, the so-called “fear index” peaked above 20, which is right around the historic average. It has since fallen back down to the 15-16 range, where it has held for the past three weeks.
The U.S. stock market returned to record levels this month, but the gains were largely fueled by expectations that the Federal Reserve will lower interest rates in July. Just one month ago, stocks were plunging because of the U.S.-China trade war and signs of a slowing domestic economy.
It’s ironic that the Fed is planning to lower interest rates when most of its metrics are exceeding expectations.