Economist's Insights

Today’s Trading Activity – Nasdaq Hits New Record High, as Dollar Sinks to 11-Month Low

Jul 20, 2017

The Nasdaq edged 0.1% higher Wednesday (third straight record close) as the Dow dropped 0.1% and the S&P barely changed. The Nasdaq’s 10th consecutive daily gain marked the longest streak since February 2015. Stocks recovered from a 9:30 a.m. CT tumble on a report that Special Counsel Mueller would review activities of Trump businesses as part of the investigation into Russia’s interference in the U.S. election. Treasury yields fell but were off of the intraday lows by the close. The low marks (1.34% on 2s, 2.24% on 10s) were reached on the back of the ECB’s latest decision and after the report about the Special Counsel’s investigation. The 2-year yield finished down 0.4 bps at 1.35% while the 10-year fell 1.1 bps to 2.26%. In currencies, the Dollar closed at an 11-month low as the Euro surged to its strongest level against the greenback in 30 months (January 2015). Comments from Draghi that recent strength in the common currency had received “some attention” and that the ECB would discuss potential QE changes in the autumn appeared to be the catalyst for the Euro’s gains. Oil prices fell after briefly touching their highest levels in six weeks.