Business

US stocks return to decline after early rebound

Stocks showed a marked decline during Tuesday’s trading day after showing a strong upside move early in the session. The key averages have fallen significantly from the session highs to the negative territory.

Technology-intensive Nasdaq has been traversing lines that haven’t changed in recent trading, currently down 2.73 points, at 11,620.52, less than a tenth percent. The Dow is down 266.67 points or 0.8 percent at 31,979.03 and the S & P 500 is down 20.95 points or 0.5 percent at 3,970.29.

With the pullback on the day, the Dow and S & P 500 fell to their lowest daytime levels again in over a year.

The early rebounds on Wall Street partially reflected bargain hunting as some traders tried to lower prices to get stocks following recent sellouts.

The plunge seen on Monday lowered Nasdaq to its lowest closing price since November 2020. Meanwhile, the Dow and S & P500 also recorded the closing price of the year.

However, interest rate buying weakened in the morning as traders remained vigilant about inflation, rising interest rates and global outlook. Economy..

Traders may also be hesitant to return to market Prior to the release of key inflation data over the next few days.

The Ministry of Labor plans to release a report on consumer price inflation on Wednesday, with price inflation expected to drop from 8.5% in March to 8.1% in April.

The latest snapshot of inflation could affect expectations about how the Federal Reserve plans to raise interest rates aggressively.

Sector news

Bank stocks were under pressure during the session, with the KBW Bank Index falling 2.6% to its lowest midday level in over a year.

Commercial real estate stocks also show significant weakness, as reflected in the 2.4% drop in the Dow Jones US Real Estate Index. The index also fell to the lowest level in a year.

Telecom stocks also showed considerable weakness on the day, with the NYSE Arca North American Telecom Index down 2.2%.

Steel, housing and utility stocks have also shown a noticeable downtrend as the day goes on, but there is some strength among biotechnology stocks.

Other markets

In foreign trading, the Asia-Pacific stock market fell sharply on Tuesday, but China’s Shanghai Composite Index receded its downtrend and rose 1.1%. Japan’s Nikkei Stock Average fell 0.6%, while Hong Kong’s Hang Seng Index fell 1.8%.

Meanwhile, major European markets have returned to highs due to recent weaknesses. Germany’s DAX index rose 1.2%, while France’s CAC 40 index and the UK’s FTSE 100 index rose 0.5% and 0.4%, respectively.

In the bond market, the Treasury is expanding the rebound seen in the last session. As a result, the yield on benchmark 10-year bonds, which move in the opposite direction of the price, drops 12.5 basis points to 2.954%.

Contact for comments and feedback: editorial@rttnews.com

Business news



US stocks return to decline after early rebound

Source link US stocks return to decline after early rebound

Back to top button