Dow advanced 351, advancers over decliners 2-1 & NAZ gained 228.  The MLP index was steady in the 223s & the REIT index added 2+ to the 352s.  Junk bond funds crawled higher & Treasuries had only limited selling, bringing slightly higher yields.  Oil went up to the 72s & gold was off 2 to 1941.

AMJ (Alerian MLP Index tracking fund)

Treasury auction signals possible leeway on June 1 debt ceiling deadline

Traders are ratcheting up the odds that the Federal Reserve lifts interest rates for the 11th straight time in Jun amid ongoing signs of inflationary pressures in the US economy.  Traders are now pricing in a 52.8% chance of another qtr-percentage point increase during the Fed's Jun 13-14 meeting — a significant rise from just one day ago, when 36.4% projected another hike, according to the CME Group's FedWatch tool.  The jump came one day after minutes from the Fed's May meeting indicated that central bank officials are divided on whether additional interest rate hikes are needed to lower chronically high inflation.  "Several participants noted that if the economy evolved along the lines of their current outlooks, then further policy firming after this meeting may not be necessary," minutes from the central bank's May 2-3 meeting said.  At the same time, "some" policymakers noted that chronic inflation means "additional policy firming would likely be warranted at future meetings."  In Fed vernacular, "several" typically implies more than "some."  Despite the division over future rate hikes, officials unanimously agreed at the meeting to lift the federal funds rate for the 10th straight time to 5.00-5.25%, the highest since 2007.  Policymakers also removed a key phrase from its post-meeting statement that indicated "additional policy firming may be appropriate" at coming meetings & stressed they will rely on economic data releases for any future policy shifts.  "Participants generally expressed uncertainty about how much more policy tightening may be appropriate," the minutes said.  "Many participants focused on the need to retain optionality after this meeting."  Although inflation has eased from a peak of 9.1%, it remains about more than double the pre-pandemic average & well above the Fed's 2% target rate.  On top of that, the labor market remains uncomfortably tight, with unemployment recently falling to 3.4%, the lowest rate since 1969, despite the slew of rate increases & ongoing strains within the banking sector.

Another Fed rate hike could be in play during June meeting

Debt ceiling talks enter crunch time as negotiators get closer to a deal

Traders are optimistic about those guys in DC will agree on a debt ceiling bill.  So they are buying stocks today.  What else is there to say?

Dow Jones Industrials