Featured # Markets | 2 years ago

Energy Leads Wall Street Gains Before Yellen’s Speech

The Nasdaq is on course for its highest one-day percentage gain since May 27. The Dow and S&P 500 is on course for their best day since May 25, which was also the last time the Dow ended up more than triple digits in terms of points. Federal Reserve Chair Janet Yellen will likely keep the door open to an interest rate hike within the next few months while striking a balanced tone about the disappointing jobs growth and mixed signals in the economy.

“We are likely to get a dovish speech by Yellen,” said Mohannad Aama, Managing Director, Beam Capital Management LLC in New York. “She is not likely to tip her hand in one way or the other, but the impact or potential surprise of a rate hike (when the Fed meets) next week is going to be high.”

Yellen’s speech will be the last public comment by central bank officials before their June 14-15 meeting.
Ahead of the speech, traders are pricing in a 5.6 percent chance of a hike in June, while the odds of a July hike was at 35.3 percent. The S&P 500 was up 9.79 points, or 0.47 percent, at 2,108.92 and the Nasdaq Composite was up 20.90 points, or 0.42 percent, at 4,963.42. Nine of the 10 major S&P sectors were higher, led by the energy index’s 1.6 percent gain as crude prices hit a six-month high of $50.83.

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