3rdPartyFeeds News

Market Snapshot: U.S. stocks off to mixed start after major indexes hit all-time highs

U.S. stocks trade mixed, with markets pausing for breath as investors return from a three-day weekend after record finishes for the S&P 500 and Nasdaq Composite. Read More...

U.S. stocks were in a holding pattern near record highs on Tuesday as investors returned from a three-day weekend.

Investors were also keeping tabs on oil prices, which pulled back after surging to six-year highs after talks by the Organization of the Petroleum Exporting Countries and its allies failed to come to an agreement on a proposal to boost output in coming months.

What are major benchmarks doing?
  • The Dow Jones Industrial Average DJIA, -0.36% dropped 110.83 points, or 0.3%, to 34,675.52.
  • The S&P 500 SPX, -0.17% edged down 5.14 points, or 0.1%, to 4,347.20.
  • The Nasdaq Composite COMP, +0.04% was off 32.54 points, or 0.2%, at 14,671.86.

U.S. markets were closed Monday in observance of Independence Day, which fell on Sunday. On Friday, the S&P 500 closed at its seventh consecutive record — its longest such streak since 1997 — and the Nasdaq Composite and Dow also finished at all-time highs.

What’s driving the market?

Stocks have slowly pushed further into record territory in recent weeks as investors focused on a strengthening economy as fears of inflation appeared to ease.

“Sentiment towards risk remains positive as we enter the second half of the year after a positive end to Q2. The S&P 500 and other U.S. indices hit repeated new all-time highs, with investors happy to buy every dip in the markets,” said Fawad Razaqzada, analyst at ThinkMarkets, in a note.

Need to Know: Here’s what could turn a ‘breather’ for stocks into a bigger correction

Accelerating COVID-19 vaccinations around the world and central bank stimulus are seen contributing to strong economic growth, while fears that inflation will hit uncomfortably high levels have been kept at bay as the Federal Reserve and other central banks insist that increased price pressures are a temporary phenomenon resulting from supply-chain bottlenecks, he said.

Read: What to expect if ‘peak everything’ already has happened and markets feel the force of gravity again

Also see: Is the market pricing in ‘peak growth’? These charts suggest as much, says a leading strategist

Inflation concerns may be back in focus though, analysts said, as oil prices surged following the breakdown of OPEC+ talks aimed at further lifting output curbs beginning in August. Crude benchmarks pulled back after hitting levels last seen in 2014.

Talks were called off Monday after the United Arab Emirates stuck to its call to increase the baseline used to determine its output level and objected to a plan to extend the framework for the existing program of supply cuts from April 2022 through the end of next year.

The jump in oil prices will put energy shares in focus.

The final reading of the IHS Market services purchasing managers index for June is due at 9:45 a.m. Eastern. The Institute for Supply Management’s services index, due at 10 a.m., is expected to fall to 63.3% from 64%. A reading of more than 50% indicates expansion in activity.

Which companies are in focus?
How are other markets trading?
  • The yield on the 10-year Treasury note TMUBMUSD10Y, 1.391% fell 3.3 basis points to 1.402%. Yields and debt prices move in opposite directions.
  • The ICE U.S. Dollar Index DXY, +0.28%, a measure of the currency against a basket of six major rivals, rose 0.2%.
  • The U.S. oil benchmark CL00, -1.16% turned lower, down 0.7% at $74.59 a barrel on the New York Mercantile Exchange. Gold futures GC00, +1.39% rose 1.4% to $1,807.50 an ounce.
  • European equities were mixed, with London’s FTSE 100 UKX, -0.52% off 0.2%, while the Stoxx Europe 600 index SXXP, -0.01% rose 0.2%.
  • In Asia, the Shanghai Composite SHCOMP, -0.11% edged down 0.1%, while Hong Kong’s Hang Seng Index HSI, -0.25% fell 0.3% and Japan’s Nikkei 225 NIK, +0.16% rose 0.2%.

Read More

Add Comment

Click here to post a comment