European and U.S. stocks rebounded across the board on Wednesday after two straight days of losses attracted investors to take the plunge. European stocks were led higher by retail and technology stocks. Several sectors in the U.S. rose more than 1%, with cyclical stocks such as cruise ships and airlines, which are sensitive to economic recovery, recovering lost ground, and small-cap stocks rebounding far ahead of the broader market.
And Nifty, which reported unexpectedly much weaker-than-expected growth in paid subscribers, plunged, dragging down a number of other stocks that benefited from the home ban during the epidemic.
The Canadian dollar jumped intraday after the Bank of Canada scaled back QE bond purchases and released a hawkish signal of an expected early rate hike. The dollar index turned lower intraday as bitcoin losses narrowed and ethereum rose further, but dogcoin extended Tuesday’s losses. The U.S. marked $24 billion in 20-year Treasuries showing good external demand, with benchmark 10-year U.S. bond yields turning down intraday from a rise to a four-week trough.
Among commodities, international crude oil futures fell further after India struggled to contain the new crown outbreak and investors’ concerns about fuel demand intensified after the U.S. Department of Energy released last week’s EIA crude oil inventories unexpectedly rose instead of falling; gold continued to rise on the back of a lower dollar and U.S. bond yields, setting a new nearly two-month high; copper rallied strongly on expectations that demand growth is fueling an oversupply situation, closing at a new high in more than nine years; and Palladium hit a new all-time high on expectations of a widening supply gap.
Three major U.S. stock indexes end two-game losing streak Small-cap stocks outperform broader market Cruise ships and airlines rally big Nifty leads home-based beneficiaries bucking market decline
The three major U.S. stock indexes opened lower collectively, turned higher at the beginning of the session and have been on the move ever since. The S&P 500 index was down 0.2% at a new daily low and up nearly 1% at a new daily high in late trading. The Dow Jones Industrial Average fell nearly 50 points at the beginning of the day when the new daily low, and regained 34,000 points at midday, up nearly 340 points when the new daily high, a percentage increase of about 1%. The Nasdaq Composite Index had fallen nearly 0.6% at the beginning of the day, rose above 13,900 points in late trading, up nearly 1.2% at one point during the day.
Eventually, the three major indices ended two consecutive days of closing down trend. The Dow closed up 316.01 points, or 0.93%, at 34137.31 points, the largest closing gain since April 5, approaching the record closing high set last Friday, erasing Tuesday’s decline of more than 250 points set by the largest closing decline since March 23. The S&P closed up 0.93% at 4173.42, also erasing Tuesday’s biggest closing loss since March 23 and moving closer to the closing high set on Friday. The Nasdaq closed up 1.19% at 13,950.22, coming off the closing low since April 7 set on Tuesday.
Small-cap stocks underperformed the broader market for the first time in the last four trading days, with the value-cap-dominated small-cap index Russell 2000 opening slightly lower and expanding to more than 2 percent at midday to close up 2.35 percent. The technology-heavy Nasdaq 100 index closed up 0.91%.
Dow components, Dow Chemical and IBM, which bucked the market on Tuesday, rose nearly 4% to lead the way. S&P 500 of the 11 major sectors, Wednesday only fell nearly 0.9% of the utilities and down nearly 0.3% of the telecommunications services 2 closed lower. Up in the sector, up nearly 1.9% materials led the way, in addition to up 0.4% of real estate and up nearly 0.5% of essential consumer goods, other sectors rose at least 1%.
Among sector stocks, airline and cruise stocks rallied big. United Airlines, which fell more than 8% on Tuesday, rose more than 3%, American Airlines, which fell more than 5% on Tuesday, rose more than 3% to erase Tuesday’s losses, and Delta Air Lines rose more than 2%. Tuesday’s decline of more than 4% of Norwegian Cruise in Goldman Sachs upgraded after closing up more than 10%, Carnival Cruise and Royal Caribbean Cruises rose more than 6% and 4%, respectively.
Bank stocks rose in general, banking ETFs rose more than 2%, Morgan Stanley rose more than 2%, Wells Fargo, Bank of America, Citi rose more than 1%.
Leading technology stocks rose and fell in different ways. FAANMG six major technology stocks, closing down more than 7% of the worst performance of Nifty, Facebook fell nearly 0.4%, Google parent company Alphabet gradually erased most of the losses at lunchtime, closing down nearly 0.03%, Microsoft, Amazon and Apple were down 0.9%, 0.8% and nearly 0.3%.
In addition to Nifty and Facebook, other home ban beneficiary stocks, Peloton closed down more than 6%, Zoom and Roku early trading had fallen more than 2% and 5%, respectively, by virtue of the end of the turn up respectively closed up 0.3% and 0.5%, early trading had fallen more than 2% Cloudflare lunchtime turn up, closed up nearly 2%.
Other technology stocks, chip stocks rose collectively, the semiconductor sector ETF SOXX closed up 2.6%, tying the biggest gain in a month hit on Monday; individual stocks, applied materials rose nearly 5%, NXP rose more than 3%.
In addition to Tesla, other new energy auto stocks also rose collectively, with Tucson Future up 13%, Azera up more than 5%, Xiaopeng up more than 4%, and Ideal Auto up more than 3%.
Among the new stocks, UiPath, a leading robotics process automation (RPA) company, opened up 17% on its first day of trading and closed up more than 23%. Excluding the green shoe overweight, its IPO raised $1.34 billion, which, if taken into account, would make it the third largest software IPO in the U.S. stock market.
Top Chinese stocks outperformed the broader market, with KWEB, a Chinese ETF, up 2% and CQQQ up nearly 1.3%.
In European markets, pan-European and major European stock indices rallied collectively. Europe’s Stoxx 600 index out of Tuesday’s record low since April 1, the sectors, up more than 1.8% of retail and up nearly 1.7% of technology led the way, but real estate and financial-related sectors bucked the market decline. Among individual stocks, chip stocks, Dutch lithography giant ASML rose more than 4%, the division raised its full-year sales forecast and expects sales revenue to grow 30% this year, thanks to strong demand in a global chip shortage environment.
The U.S. dollar index turned down near a seven-week low during the session, and the Canadian dollar rose more than 1% during the session The offshore yuan rose eight straight to a new five-week high Bitcoin once fell nearly 5% Dogcoin fell nearly 10%
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, had risen above 91.40 to refresh its daily high before the U.S. stock market, up 0.2% intraday, and has continued to move downward since then. The U.S. stock market turned down in early trading, once falling below 91.09 intraday, close to the new low set since early March by Tuesday’s intraday drop below 90.86, with the maximum intraday drop close to 0.17%.
U.S. stocks in the early trading session, the Bank of Canada announced a resolution, the Canadian dollar pulled up intraday, the dollar against the Canadian dollar fell back more than 100 points in the short term, once down more than 1% in early trading, down to 1.2470.
By Wednesday’s U.S. stock market close, the U.S. dollar index was slightly above 91.10, down more than 0.13% during the day; the Bloomberg U.S. dollar spot index was down 0.1%; the U.S. dollar was below 1.2500 against the Canadian dollar, down about 0.7% during the day.
Offshore yuan (CNH) rose for eight consecutive days against the U.S. dollar, at 6.4902 yuan at 5:59 p.m. GMT on the 22nd, hitting a new high for the second consecutive day since March 17, up 103 points from Tuesday’s end of New York, with overall trading in the 6.5023-6.4879 yuan range during the session.
Mainstream cryptocurrencies were mixed on Wednesday. CoinMarketCap data showed that by the close of the U.S. stock market, Dogcoin (DOGE), which fell nearly 20% on Tuesday, was down nearly 9.7% cumulatively in the last 24 hours.
Bitcoin (BTC) fell below $54,400 during the European session to set a new daily low, down nearly $2,800 from its early Asian session intraday high, a percentage drop of nearly 5%, and rebounded after the U.S. stock market opened, regaining $56,000 at midday before falling back down to close below $55,200, down more than 2% in the last 24 hours.
Ether (ETH), the second largest cryptocurrency by market capitalization after Bitcoin, had tested $2,470 during the U.S. session, setting a new intraday high since last Saturday, April 17, and was above $2,410 at the close of U.S. trading, up nearly 6% in 24 hours.
10-year U.S. bond yields turn lower intraday after 20-year Treasury bid sale
U.S. 10-year benchmark Treasury yields in the U.S. stock market in early trading had approached 1.59% to refresh the daily high, intra-day rise of nearly 3 basis points, after the announcement of the results of the U.S. 20-year Treasury tender sale at lunchtime, yields gradually retracted all the gains turned down.
By the end of the day, the 10-year U.S. bond yield was at 1.55%, down 1 basis point intraday, close to the intraday low set last Thursday when it fell through 1.53% since March 11.
By the end of the day in New York, most yields on U.S. bonds of all maturities fell, with yields on 10-year U.S. bonds dropping more than 0.3 basis points, 2-year by 0.2 basis points, 30-year by less than 0.1 basis points, and the 5-year by nearly 5 basis points.
European government bond prices on Wednesday showed mixed performance, German bonds stopped rising, British bond prices fell back, France, Spain, Italian bonds continue to rise. British 10-year benchmark Treasury yields rose nearly 1 basis point to 0.74% during the day; the same period, the German bond yield reported about -0.26%, roughly unchanged from Tuesday’s level.
Lund copper Lund tin are more than nine years high gold hit a new eight-week high palladium rose more than 4% to a new record high
London base metals futures rose on Wednesday, except for lead, which fell for two consecutive days, falling further away from more than a month highs. Copper, aluminum and zinc rebounded, with copper rising above $9,400 for the first time since Feb. 25, closing at a new high of more than nine years. Lun tin rose for the seventh consecutive day, closing close to $ 27,000, also hit a new high of more than nine years. Aluminum hit a new high in almost three years after last Thursday. Zinc broke out of a one-week low. Nickel ended a four-day losing streak, coming off a low since the end of last month.
Precious metals rose. New York gold futures rose for the second day in a row, closing at a new high since late February for the second time in the last four sessions. COMEX June gold futures closed up 0.8% at $1,793.10 per ounce, a new high for the main contract since February 24 set on Friday.
NYMEX June palladium futures closed up 4.29% at $2875.60/oz, closing at a record high. Spot palladium approached $2,896 intraday on Wednesday, setting a new intraday record high set in February last year, with the largest intraday gain of 4.8%.
Crude oil falls more than 2%, the biggest drop in more than two weeks and a new one-week low
International crude oil futures closed lower for the second straight day, hitting another one-week low.
WTI June crude oil futures closed down $1.32, or 2.10%, at $61.35/barrel; Brent June crude oil futures closed down $1.73, or 2.58%, at $65.32/barrel, both the biggest closing losses since April 5 and a second consecutive day of new lows since April 13.
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