US Stock Market Overview – The Dow Hits Fresh All-time Highs Led by Boeing
US stocks were mixed on Monday, as concerns that President Trump would not approve the reduction in tariffs in phase one, lingered over market participants. The Dow Industrial Average edged higher making a fresh all-time high in the large cap index. Boeing shares were the catalyst behind the rise in the Dow Industrials. Most sectors in the S&P 500 index were lower, led down by Energy and Healthcare. Real estate and Communications were the best performing sectors. Boeing shares rebounded, and it was the best performing stock in the S&P 500 index rising nearly 5%. The bond market was closed on Monday in celebration of the US Veterans Day Holiday. Crude oil prices moved sideways, but natural gas prices tumbled, which weighed on energy shares.
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The VIX Rises from Depressed Levels
The VIX volatility index rebounded approximately 7% on Monday rebounded from annual lows. The VIX which measures the implied volatility of the at the money strike prices on the S&P 500 index, has been hovering near the 2019 lows near 12%. This shows that there is plenty of market complacency. The range for the VIX in 2019 was a high near 36% and a low of 11%, which shows investors that there is little concern of an adverse market move according to premiums priced into options.
Climate Change Could Be Incorporated into Fed Policy
A report on from the New York times shows that the Fed sees climate change shaping economic policy. The FOMC signaled it may be getting ready to join some others in incorporating climate change risk into its assessments of financial stability and assisting in its reasoning to set monetary policy.