U.S. Stock Market

Sep S&P 500 E-minis this morning are up +5.50 points (+0.20%) at a new 3-month high. Tuesday's closes: S&P 500 +0.17%, Dow Jones -0.01%, Nasdaq +0.57%. The S&P 500 on Tuesday closed higher on reduced geopolitical concerns on the Korean peninsula after President Trump and North Korean leader Kim Jong Un met in Singapore and agreed to work towards denuclearization of the Korean peninsula. There was also strength in energy stocks after Jul WTI crude oil rose by +0.39% to a 1-week high. Stocks were undercut by the +2.2% y/y increase in the May core CPI, which was a 15-month high and was hawkish for Fed policy. There was also weakness in defense stocks as a potential peace deal between the U.S. and Korea could conceivably lead to reduced U.S. defense spending.