U.S. bond yields climbed strongly again, market inflationary pressure increased, coupled with poor economic data, U.S. stocks continue to bear downward pressure, the three major stock indexes fell in the session. Technology stocks remain the main drag, with the Nasdaq leading the decline. The S&P was supported by cyclical stocks energy and banks, and the Dow was supported by some constituents led by Boeing and JPMorgan Chase, with relatively limited losses.
In Wednesday’s session, the bond market’s Inflation indicator – the U.S. five-year inflation-protected Treasury bonds (TIPS) break-even inflation rate rose above 2.5%, the first Time since the 2008 subprime mortgage crisis broke through this barrier. At the same time, the 5-year U.S. bond yield was once close to 0.75%, which analysts called the second wave of warning signs for the stock and credit markets.
The U.S. ADP private employment rose by 117,000 in February, well below the market’s expected increase of 200,000; the U.S. ISM non-manufacturing index showed that service sector activity in February hit its lowest expansion rate in nine months, with new orders, business activity and employment sub-indexes all falling in the month, while the price payment index hit a The price payment index hit a new high in September 2008, also reflects the inflationary resurgence of the momentum.
European and U.S. Treasury bond prices fell on Wednesday as yields rebounded. Industrial metals such as copper and precious metals such as Gold fell collectively on Wednesday amid inflationary pressures. The media spread the news that OPEC+ is considering keeping the current scale of production cuts in April, and the U.S. announced the biggest drop in gasoline stocks in more than three decades last week, with international Crude Oil reversing days of losses and rising more than 3% intraday. After Tuesday’s intraday turnaround, the dollar index rebounded, though cryptocurrencies such as bitcoin were unaffected and rose collectively.
The Nasdaq led the broader U.S. stock market down Banks, energy and other cyclical stocks bucked the market Pan-European stock indexes three consecutive positive but technology stocks continue to fall
The three major U.S. stock indexes performed differently on Wednesday, with the Nasdaq Composite Index continuing to lead the decline, having fallen more than 1% in early trading and expanding to more than 2% in midday trading. The S&P 500 Index only briefly turned up at the beginning of the session, and late in the day the decline expanded to more than 1%. The Dow Jones Industrial Average briefly turned down in early trading when it fell more than 66 points, and rose more than 140 points at lunchtime when it refreshed its daily high. After the S&P and the Nasdaq new daily low at midday, the Dow turned down again at the end of the day.
Finally, the three major indices collectively closed lower for the second consecutive day. The Nasdaq closed down 2.7% at 12,997.75 points, a new closing low since January 6, the first time since January 15 to close below 13,000 points. The Dow closed down 119.98 points, or 0.38%, at 31,271.54, a new low since Feb. 5. The S&P 500 closed down 1.30% at 3819.80 points, approaching the new low since Feb. 1 set on Friday. The Russell 2000, a small-cap index dominated by value stocks, closed down 1.06 percent.
Dow components, up more than 2% Boeing and up nearly 2% JPMorgan Chase performed best, Goldman Sachs and energy stocks Chevron rose more than 1%, Intel, Apple, Microsoft, these technology stocks are down more than 2%.
FAANMG six major technology stocks all fell, Nifty fell nearly 5% led the decline, Amazon fell nearly 2.9%, Google parent company Alphabet, Apple, Microsoft fell more than 2%, Facebook fell more than 1%. Among other star tech stocks, Zoom fell more than 8% and tesla closed down more than 4.8%. Biotech stocks PACB and NVTA fell more than 7%, while ADVM and NVCR fell more than 5%.
S&P 500 of the 11 major sectors, Wednesday only rose more than 1% of energy, up more than 0.7% of the financial and slightly up less than 0.1% of the industrial three closed up, down sectors, information technology and non-essential consumer goods fell more than 2% to lead the decline, in addition to a decline of more than 0.5% of essential consumer goods, all other sectors fell more than 1%.
Cruise ships, airlines, banks, energy and other cyclical stocks generally rose. Among energy stocks, Calon Petroleum (CPE) rose more than 18%, Marathon Petroleum and Sinopec rose more than 3%, and PetroChina rose nearly 3%. Bank stocks, Bank of America, Citi rose more than 2%, Wells Fargo, Deutsche Bank U.S. stocks rose more than 1%. Cruise ship, airline stocks, Norwegian Cruise rose more than 6%, Carnival Cruise, American Airlines rose more than 3%. Aluminum stocks rose, Alcoa rose more than 12%, listed in the United States Alcoa rose more than 11%.
Top Chinese continue to underperform the broader market, with Chinese ETFs KWEB and CQQQ down more than 2%. Like Tesla, the three major Chinese new energy auto stocks Azera, Ideal Auto and Xiaopeng Auto also fell more than 4%, while Baidu fell nearly 8%. While Alibaba and Tencent ADR rose nearly 0.8% and 0.5%, respectively.
In Europe, the impact of rising Treasury yields offset the rise in the economic resumption of good sectors, pan-European stock indexes closed slightly higher on Wednesday. Europe’s Stoxx 600 index closed up for the third consecutive day and hit a new high of more than a week, up more than 2% of travel, automotive and banking stocks led the way, technology stocks continue to buck the market decline.
European and U.S. Treasuries fell together 10-year U.S. bond yields rose nearly 10 basis points during the day
European Treasury bond prices fell, and British and German bond yields, which had just fallen to a one-week low on Tuesday, rebounded. British 10-year benchmark Treasury yield rose 9 basis points to 0.779% during the day; German bond yields rose 6 basis points to 0.29% during the same period, all wiped out Tuesday’s decline.
U.S. 10-year benchmark Treasury yields in early U.S. trading on Wednesday approached the 1.50 mark to refresh the daily high, nearly 10 basis points higher than the intra-day lows below 1.40% in early Asian trading, still lower than the intraday high of 1.614% set last Thursday.
Midday Chicago Fed President Evans reiterated that the Fed does not need further monetary easing, saying last week’s rise in U.S. bond yields reflected investors’ optimism about the economic recovery; if needed, the Fed has the tools to curb higher yields; he would not consider supporting the Fed’s introduction of yield-wide controls.
After Evans’ speech, the 10-year U.S. bond yield stayed below 1.48% and was nearly 1.47% by the close of the U.S. session, up about 8 basis points during the day, with U.S. stocks rebounding to 1.48% after the bell.
The dollar index rallied. Bitcoin rose more than $5,000 at one point
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major dollar currencies, had risen above 91.00 in early U.S. stock trading to set a new daily high, up about 0.3% during the day, although it still did not reach Tuesday’s intraday high of nearly 91.40 for three weeks, but the rally was maintained until the U.S. stock market closed, and did not turn down during the day as it did on Tuesday.
By Wednesday’s U.S. stock market close, the dollar index was below 90.98, up about 0.2% for the day; the Bloomberg Dollar Spot Index rose 0.3%, ending a two-day losing streak.
Mainstream cryptocurrencies rose on Wednesday, bitcoin (BTC) European shares rose above $52,600,000 during the day to refresh the daily high, up more than $4,000 from the intra-day low, up more than $5,000 from the low of some platforms, the U.S. shares closed at $50,600,000 above, up about 6% in 24 hours.
Gold hit a new low of nearly nine months, and nickel fell more than $1200 a day to lead the decline in base metals
New York gold futures just ended a five-day losing streak resumed its downward trend, with COMEX April gold futures closing down 1.0% at $1,715.80 per ounce, a new low for the main contract closing since June 8 last year, following a new low for the same month last Friday and again this Monday. Other precious metals also fell, silver and platinum futures ended two consecutive positive.
London base metal futures fell collectively on Wednesday, led by a decline in LME nickel futures closed down $1255, a percentage drop of more than 6.7%, at $17,417 per ton, a new low since January 11 for more than seven weeks. Just out of more than a week of the trough of copper and a total of two days on Friday and this Monday fell more than $ 3,000 Lun tin restarted the downward trend.
Crude oil ended a three-day losing streak intraday up more than 3% U.S. oil back on the $ 60, the cloth oil out of more than two weeks trough
International crude oil futures reversed a three-day losing streak on Wednesday. In early U.S. trading, the U.S. Energy Information Administration EIA released last week’s U.S. EIA crude oil inventories rose by more than 21.5 million barrels from a year earlier, the largest single-week increase since 1982, while gasoline inventories fell by more than 13.6 million barrels last week, the largest single-week drop since 1990, reflecting the impact of a sharp reduction in U.S. Gulf of Mexico refining capacity due to winter storms in late February.
Crude oil set new daily highs after the data was released, with U.S. WTI crude up more than 3.7% intraday. Brent crude rose nearly 3.2% intraday.
Earlier on Wednesday, media sources said OPEC+ was considering keeping crude oil production unchanged in April and abandoning plans for a possible production increase due to concerns about the ongoing New crown outbreak and the fragile recovery of the oil market and global economy.
In the end, WTI April crude oil futures closed up $1.53, or 2.56%, at $61.28 per barrel, coming off the closing low set on Tuesday since Feb. 19. U.S. oil closed below the $60 mark for the first time since Feb. 19 on Tuesday. Brent April crude futures closed up $1.37, or 2.18 percent, at $64.07/barrel, after hitting a new closing low for the main contract since Feb. 12 on Tuesday.