After closing the previous session significantly higher, the stock showed a lack of direction during the trading process on Tuesday morning. The main average spent the morning bouncing back and forth across the unchanged line.
Currently, the key averages show different performances. The Dow is down 35.72 points or 0.1 percent at 33,841.25, while the Nasdaq is up 18.42 points or 0.1 percent at 14,159.90 and the S & P 500 is up 4.54 points or 0.1 percent at 4,229.33.
Unstable trading on Wall Street occurs when traders take a break following the significant volatility seen in the last few sessions.
The Dow had its highest day since March on Monday, but rose after the Best Equity Index fell to its lowest closing price in more than two months last Friday.
Meanwhile, the jump seen in the previous session lifted the wider Nasdaq and S & P 500 just beside the record highs set last month.
Traders may also be looking forward to the testimony of Federal Reserve Chairman Jerome Powell in front of the House Select Subcommittee on the Coronavirus Crisis this afternoon.
In the prepared remark, Powell Economy Citing widespread Covid-19 vaccination and unprecedented monetary and fiscal policy actions since he last appeared before the Commission, he has shown sustained improvement.
Powell admitted that inflation has risen significantly in recent months, but the rise is due to “temporary” factors, towards the Fed’s long-term target of 2% inflation. Inflation is expected to fall.
Federal Reserve Board warned Coronavirus The pandemic continues to pose risks to the economic outlook, pointing out slowing the pace of vaccination and new strains of the virus.
Powell emphasized that the Fed “does everything it can to support the economy as long as it is necessary to complete the recovery.”
Traders may be keeping an eye on the Q & A part of Powell’s testimony to further clarify the outlook for monetary policy.
On the economic front of the United States, the National Association of Real Estate Agents released a report showing that existing home sales extended a recent recession in May, but did not decline more than economists expected.
Most of the major sectors showed modest movements on the day, contributing to the sluggish performance of a wide range of sectors. market..
Airline stock prices fell sharply, but the NYSE Arca Airlines Index fell 2.3%.
Natural gas and banking stocks were also bearish on the day, while retail stock strength boosted the Dow Jones US Retail Index to its highest daytime level in more than a month.
In foreign trading, the Asia-Pacific stock market almost rose during Tuesday’s trading. Japan’s Nikkei 225 Index rose 3.1% and China’s Shanghai Composite Index rose 0.8%.
Meanwhile, the major European markets were mixed on the day. France’s CAC 40 index fell 0.1%, Germany’s DAX index rose 0.1%, and the UK’s FTSE 100 index rose 0.3%.
In the bond market, government bonds saw their initial weaknesses and bounced near the unchanging line. As a result, yields on benchmark 10-year bonds, which move in the opposite direction of prices, have fallen by 1.480% below the basis point.
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US equities showing a lack of direction following recent volatility
Source link US equities showing a lack of direction following recent volatility