S&P 500 Index Futures Market News and Commentary
The S&P 500 ($SPX) on Wednesday closed up by +22.81 (+0.77%), the Dow Jones Industrials index ($DOWI) closed up +179.32 (+0.67%), and the Nasdaq 100 Index ($IUXX) closed up +57.87 (+0.74%). All of the U.S. stock indexes on Wednesday posted new record highs. A slump in world government bond yields boosted stock prices on the prospects for additional global monetary easing. The 10-year T-note yield on Wednesday fell to a 2-1/2 year low of 1.938%, the German 10-year bund yield sank to a record low of -0.399%, and the 10-year UK Gilt yield fell to a 2-3/4 year low of 0.667%. Wednesday's weaker-than-expected economic data bolstered the case for additional central bank stimulus after the UK Jun Markit/CIPS services PMI unexpectedly fell -0.8 to 50.2, weaker than expectations of unchanged at 51.0, and the U.S. Jun ISM non-manufacturing index fell -1.8 to a 2-year low of 55.1, weaker than expectations of -0.9 to 56.0. Also, Wednesday's U.S. June ADP employment report rose by only +102,000, weaker than expectations of +140,000. The VIX volatility index ($VIX) on Wednesday fell to a 2-1/4 month low of 12.56% and finished the day down -0.36 at 12.57%. The VIX is moderately above mid-April 10-3/4 month low of 11.03%.