This afternoon, the Federal Reserve released their minutes from the June meeting. Apparently, some voting members from the Federal Reserve suggested that the stock markets needed more stimulus. Well, this Fed rumor lead to a drop in the U.S. Dollar and spike in the major stock market indexes. Obviously, the leading commodity stocks surged higher as soon as the U.S. Dollar Index declined. Stocks such as Chevron Corp.(NYSE:CVX), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Exxon Mobil Corp.(NYSE:XOM), all surged higher. Gold, silver, and oil also reacted positive to the inflationary news rumor.
Traders should now realize that these Federal Reserve minutes are from the June meeting and not from today. Many traders and investors do not believe these reports that are released a month later. After all, in a time where people can tweet each other across the world in seconds, why in the world do we have to wait a month to hear what the Federal Reserve had to say? Does anyone else feel this way?
On Friday, the options for the month of July will expire, therefore, this trading week will usually have a lot of rumors spread into the end of the week. Notoriously, during the week of options expiration the markets are filled with rumors as the options on popular stocks get set to expire. We should all certainly expect a lot more volatility before this week is over.