Investors sold off some indices Thursday, June 7, as they considered the stakes facing upcoming geopolitical negotiations.
The Dow Jones Industrial Average ticked up 0.38% to 25,241.41, the S&P 500 fell 0.07% to 2,770.37 and the Nasdaq Composite Index lost 0.70% to 7,635.07.
Multiple stages have been set across the geopolitical landscape for high-stakes negotiations in coming days, which may have made investors hesitant, said Christopher Low, chief economist at FTN Financial. He said investors will be closely watching the United States and North Korea meeting scheduled for next week, as well as how the U.S. fares during the Group of Seven nations, or G-7, meeting later this week.
Low said the lead-up to the G-7 meeting has become more tense, and that the U.S. may find itself facing a block of the other six nations pushing back against its trade policies. On Wednesday, White House economic adviser Larry Kudlow said President Donald Trump would meet with French President Emmanuel Macron and Canadian Prime Minister Justin Trudeau during the summit.
JPMorgan Chase & Co. expanded 0.40% to $110.80, Bank of America Corp. added 0.17% to $30.09, Citigroup Inc. improved 0.32% to $68.45 and Wells Fargo & Co. ticked up 0.09% to $55.63.
In banking, the Office of the Comptroller of the Currency seems to be taking a quieter approach following the conclusion of its review of sales practices at various supervised banks, according to industry observers. That approach could change if political figures exert enough pressure to reveal more about the review's findings.
Federal regulators' proposal to tweak the Volcker rule would remove some compliance requirements, but the extent of cost savings that banks would likely see is difficult to quantify, analysts say. The five agencies responsible for implementing the Volcker rule have now signed off on sending their plan to a 60-day comment period, though voting members of three of those agencies opposed the proposal and cautioned against easing the current framework.
In bank movers, Berkshire Hills Bancorp Inc. jumped 6.87% to $43.55, Flagstar Bancorp Inc. improved 3.97% to $37.75 and Cadence Bancorp. rose 0.93% to $30.35. Simmons First National Corp. fell 1.65% to $32.80, Guaranty Bancorp declined 1.57% to $34.50 and BofI Holding Inc. dropped 1.41% to $44.02.
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