Earlier today, August 23rd, as weakness in industrials overpowered gains in technology shares, U.S. stocks slipped, marking a halt to a four-day advance.
Due to the ongoing political mayhem and Federal Reserve minutes that showed no change to the pace of tightening the dollar slumped.
Oil prices climbed and reached a price of $67 per barrel, taking the energy producers to the extreme limit, after a U.S. government report displayed the biggest decline in crude inventories since July.
There was a rise in small caps as well, as the technology-heavy Nasdaq indexes added nearly 0.4 per cent, while the S&P 500 Index dropped less than a point.
As the Fed signalled in meeting minutes a willingness to hike again if the economy stays on track, the dollar weakened for a fifth day in a row and the 10-year old Treasury yield fell to 2.82 percent.
The Fed, however, said that it would stick to its original game plan and will continue raising rates once a quarter at least for the next couple of quarters.
In the words of Bob Baur, the chief global economist at Principal Global Investors, “Nothing in the FOMC minutes indicates any change to those plans.”
Notably, as the attention continues to remain on the legal drama in Washington, U.S. stocks maintained its position near records amidst double-digit corporate profit growth.
Also as the Fed stays on track to raise rates in this economy that is strengthening, benchmark Treasury yields have held below 3 percent.
Several analysts closely following this matter claim that the upcoming meeting of central bankers on Friday in Jackson Hole, Wyoming could possibly bring about some clarity.
In other news, following reports of a White House official saying that a Nafta deal is quite near, the Mexican peso gained. Additionally, the Japanese yen edged lower while Emerging-market shares rallied.