by JustForex
US equities tumbled from all-time highs as investors weighed the start of the corporate earnings season and an increase in the total amount of bond offerings that triggered the rally.
Intel plunged together with Nvidia Corp., making the Nasdaq 100 fall as well. Yields rallied as the US Treasury auctioned 3- and 10-year bonds amid weaker demand than in the previous bond sales. The government will place 30-year bonds tomorrow.
While the US recovery is accelerating, several countries in Europe and South America are suffering from rising Covid-19 cases and vaccination problems. The rotation to cyclical and small-cap stocks also appears to have stopped, prompting concerns over the strength of the US economic recovery early in the earnings season.
At the same time, colossal government spendings and stimulus from the central bank can trigger excessive inflation. On Sunday, in an interview with CBS’s 60 Minutes, Federal Reserve Chairman Jerome Powell tried to reassure that any spike in price pressures would be short-lived.
In the world market, oil rose slightly above $60 per barrel. The yield on US government bonds rose just above 1.67%.
Free Reports:
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Main market quotes:
S&P 500 (F) 4,119.62 -0.63 (-0.02%)
Dow Jones 33,745.40 -55.20 (-0.16%)
DAX 15,255.30 +40.30 (+0.26%)
FTSE 100 6,884.67 -4,45 (-0.06%)
USD Index 92.218 +0.074 (+0.08%)
- – UK Monthly GDP (3m/3m) at 09:00 (GMT+3);
- – UK Manufacturing Output (m/m) (Feb) at 11:30 (GMT+3);
- – The ZEW Indicator of Economic Sentiment in Germany (Apr) at 12:00 (GMT+3);
- – US Core Consumer Price Index (CPI) (m/m) (Mar) at 15:30 (GMT+3).
by JustForex
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
- The British index has updated the historical maximum. Oil lost 5% over the week May 3, 2024
- US Fed tilts towards a rate cut despite the postponement. HKMA left the rate unchanged at 5.75% May 2, 2024
- Brent crude oil hits seven-week low May 2, 2024
- Target Thursdays: USDJPY, Copper & EURCAD May 2, 2024
- WTI oil declines on rising inventories and negotiations between Israel and Hamas. Rising unemployment in New Zealand may force RBNZ to start cutting rates earlier May 1, 2024
- Bitcoin stumbles below $60k ahead of Fed May 1, 2024
- Expert Says Now Looks Like a Good Time To Buy This Renewable Energy Stock Apr 30, 2024
- Optimism over corporate earnings is fueling stock indices. The Hong Kong index reached a 5-month high Apr 30, 2024
- FXTM’s Copper: Hits fresh two-year high! Apr 30, 2024
- European indices grow on the ECB’s “dovish” position. Quarterly reports of mega-companies support the broad market Apr 29, 2024