Domestic, international and emerging markets equity posted positive returns in the second quarter of 2017 Two major U.S. stock indices closed at new highs in June, continuing the new-high trend that began after the presidential election in November 2016. On June 2, the NASDAQ topped 6,300. And on June 19, the Dow Jones Industrial Average closed at 21,528.99.
The Federal Open Market Committee raised its short-term interest rate 0.25% in June, as it did in March, raising the target range to 1.0% – 1.25%. The yield curve has flattened, but is a long way from inversion, Raymond James Senior Fixed Income Strategist Doug Drabik said.
Internationally, the United Kingdom’s general election failed to provide the incumbent Conservative party with the mandate it sought, adding uncertainty to the UK’s withdrawal from the European Union in the early stages of negotiations. In France, the election of a pro-Europe president sparked hope of Parliament-led reform.