Dow jumps more than 100 points, continuing rebound from sell-off sparked by Comey memo

May 19, 2017
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Justice Department officials announced Wednesday that Deputy Attorney General Rod Rosenstein had tapped former FBI Director Robert Mueller as special counsel, taking over the investigation into Russia’s alleged meddling in the 2016 election.

“For a while now, we’ve been in this tenuous position for stock prices and I think that’s going to continue until we get more clarity,” said Michael Arone, chief investment strategist at State Street Global Advisors.

Trump made his first trip overseas since taking office on Friday, first traveling to Saudi Arabi, which is planning to buy billions of dollars worth of U.S. arms.

In economic news, there were no major data released Friday. However, St. Louis Federal Reserve President James Bullard said the central bank’s plans to raise rates may be too fast.

The Fed is slated to meet next month, with market expectations for a rate hike near 80 percent, according to the CME Group’s FedWatch tool.

U.S. Treasurys fell on Friday, with the benchmark 10-year note yield advancing to 2.235 percent and the two-year note yield near 1.27 percent.

The U.S. dollar fell against a basket of currencies, with the euro rising 0.89 percent to $1.1203.

“The US side should, however, become less USD negative, in so much as the market is starting to more realistically appraise the way politics will impact the Fed, notably via US financial conditions,” said Alan Ruskin, global head of Group-of-10 foreign exchange strategy at Deutsche Bank, in a note.

“A June hike is still seen as very likely, while the 10y yield has also stopped short of the major 2.15/2.16% support line. In that sense the USD has more support, if Washington goes a little quieter, at least while the special prosecutor sets up infrastructure,” he said.



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