Stocks rise, shaking off reports that Trump wants to leave the WTO

Stocks rose Friday as markets shrugged off unconfirmed reports that the US could abandon the World Trade Organisation. The dollar fell against a basket of peers, and Treasury yields edged higher.

Here is the scoreboard:

Dow Jones industrial average:24,269.71 +53.66 (+0.22%)

S&P 500: 2,723.09 6.78 (+0.25%)

  1. Inflation in the US hit the Federal Reserve’s target of 2% for the first time in six years. Personal consumption expenditures rose to 2.3% in the 12 months to May, the Commerce Department said.
  2. Axios reported President Donald Trump wants to pull the US out of the World Trade Organisation,a claim Treasury Secretary Steve Mnuchin called “fake news.” The move, which the White House has not officially denied, has the potential to disrupt decades of international trading order.
  3. The yield curve hit its flattest point since 2007. The gap between short- and long-term bond yields, which has historically predicted recessions when it has turned negative, narrowed to 30 basis points.
  4. General Motors said Trump’s tariffs could undermine the company’s ability to compete globally. In a filing with the Commerce Department, the US’s largest automaker warned that protectionist policies could lead to a reduced presence at home and threaten jobs.

And a look at the upcoming economic calendar:

  • The US and the UK release manufacturing data.
  • Australia reports monthly building approvals.

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