U.S. stocks generally retreated Tuesday ahead of the Federal Reserve’s monetary policy meeting and the tech giant’s earnings report, with both the S&P and Nasdaq falling off the highs set Monday. The Dow, which had fallen to a near two-week low during the day, barely closed higher after some of its constituents, led by McDonald’s and Chevron, turned higher in the afternoon session. The small-cap index continued to outperform the broader market.
Blue-chip technology stocks had fallen en masse during the day, significantly dragging down the broader market. Leading the decliners, Tesla reported a record net profit for the first quarter after the bell Monday, but the profit came mainly from selling regulatory credits and selling off some of its bitcoin positions, not car sales. Google parent Alphabet, which is set to report earnings after the bell on Tuesday, also failed to shake off the decline.
The results of Tuesday’s $62 billion tender sale of 7-year U.S. Treasuries showed solid demand, thanks to expectations of an improving supply and demand situation as well as month-end demand, after which the benchmark 10-year U.S. bond yield fell briefly back below 1.60%, although it continued upward soon thereafter to a new one-week high, but not as extraordinarily weak demand as the equivalent sized 7-year U.S. bond tender sale in late February this year, which in turn triggered a selloff in stocks and bonds.
The dollar index came out of its low since early March and cryptocurrencies continued to move collectively higher, with the second largest cryptocurrency, Ether, hitting another all-time high.
Among commodities, industrial metals such as copper mostly continued to rise, with copper advancing toward the $10,000 mark, approaching record highs from a decade ago, with demand from China and the risk of supply disruptions in Chile as pushers; crude oil futures rallied. the OPEC+ Joint Ministerial Oversight Committee recommended keeping production policy unchanged and gradually increasing production from May, i.e. scaling back production cuts, in anticipation of a strong rebound in demand this year; the CEO of British oil giant BP’s CEO said China’s oil demand has returned to pre-outbreak levels. In addition, commentary pointed out that U.S. freight demand has inspired a trucking fire and the U.K. continues to recover, all of which are positive for crude oil; precious metals were mixed, with gold retreating and palladium continuing to reach record highs.
In European markets, European stocks retreated, with mining stocks leading the decline. Inspired by the acceleration of inoculation in developed countries, the tourism sector bucked the market and surged to a new high. The banking sector, which benefited from the rise in European debt yields, continued to move higher, pushing the Spanish stock index to close higher for the second day in a row. HSBC, which more than doubled its earnings in the first quarter, surged, but UBS, which disclosed losses of $774 million related to the Archegos fund blowout, sank.
The Dow erased more than 100 points of losses to close slightly higher Small-cap indexes hit a new high Tesla led the decline in leading technology stocks
The three major U.S. stock indexes fell in tandem during the session. Dow Jones Industrial Average opened down nearly 50 points, early in the day had fallen below 34,000 points, hitting a new intraday low since April 14, the largest intra-day decline of slightly more than 110 points, a percentage drop of more than 0.3%, turned up at lunchtime, back on 34,000 points, refreshing the daily high when up more than 60 points. S&P 500 index and the Nasdaq composite index that turned down at the beginning of the session, the S&P fell nearly 0.3% in early trading when the new daily low, and had turned up at lunchtime, up nearly 0.14% when the new daily high. But the end of the day and turn down. The Nasdaq hit a third consecutive intraday high since February 16 at the beginning of the session, the maximum intraday gain of more than 0.2%, down more than 0.5% in the early session when it refreshed the daily low, and remained down at lunchtime.
Ultimately, the three major indices continued to close mixed. The Dow closed up 3.36 points, or 0.01%, at 33,984.93 points, narrowly missing two consecutive days of losses. The S&P closed down 0.02% at 4186.72 points, and the Nasdaq closed down 0.34% at 14090.22 points, both ending a two-day streak of gains and falling off the record closing high set on Monday.
Small-cap stocks are relatively resistant to losses, value stocks dominated by small-cap index Russell 2000 maintained early gains, up more than 0.5% at a new daily high, but had turned down at lunchtime, closing up 0.15%, outperforming the three major indices for three consecutive trading days. Technology stocks for the heavy Nasdaq 100 index closed down 0.47%, underperforming the broader market.
Dow components, McDonald’s and the only energy stock Chevron rose more than 1.1% to lead the pack, while 3M fell more than 2%, Intel, Verizon fell more than 1%. The S&P 500’s 11 major sectors, only three closed up on Tuesday, which rose nearly 1.3% led by energy, industrial and financial up about 0.9%. Declining sectors, down more than 0.7% of the utilities led the decline, health care and telecommunications services fell more than 0.5% and 0.4%, respectively, other sectors fell less than 0.3%, the bottom of the decline was a slight decline in real estate and essential consumer goods.
FAANMG six major technology stocks half closed down Amazon rose 0.25%, Facebook and Microsoft closed up nearly 0.2%, Apple fell more than 0.2%, Nifty fell more than 0.9%, Google parent company Alphabet closed down more than 0.8%. After-hours Alphabet reported higher-than-expected earnings and revenue for the first quarter, up more than 3% after-hours, with shares at a record high. Microsoft reported higher-than-expected first-quarter earnings after the bell, but once fell more than 4% after the bell.
New energy auto stocks fell en masse, with Xiaopeng Auto down more than 4% as did Tesla, solid-state battery maker QuantumScape and Azera down more than 3%, and Tucson Future down more than 1%. Most chip stocks fell, the semiconductor sector ETF SOXX fell more than 0.7%. AMD closed down more than 0.2%, but after the bell announced a large increase in first-quarter earnings and revenue than expected, the second quarter earnings guidance is also stronger than expected, after the bell once rose nearly 4%.
In Europe, the pan-European stock index fell, the sectors, mining stocks in the basic resources led the decline, but the tourism sector rose nearly 3% to close at a record high, the banking sector rose more than 1% against the market, supporting the Spanish stock index to become the only major European countries closed up on Tuesday stock index. Individual stocks, HSBC British shares rose more than 4%, while UBS fell 2%, the bottom of the performance in the bank stocks.
Copper’s three consecutive positive to 10,000 U.S. dollars, approaching the record high set a decade ago, and tin’s new high of more than nine years
London base metals futures continued to rise on Tuesday, except for aluminum, which fell to a three-year high. Copper and nickel rose for three days in a row, with copper rising above $9,960 intraday, approaching the record high set in February 2011 when it broke through $10,000, and nickel hitting a new eight-week high. Lead rose four days in a row to a new two-month high. Zinc rose for five days in a row, hitting another two-year high. Tin rose for two days in a row, continuing to set a new high of more than nine years.
New York copper futures also approached the all-time high in February 2011. Domestic copper futures continue to soar, Shanghai copper day closing up more than 3%, once rose above 72,500 yuan / ton, refreshing a new high since August 2011.
Comments that recent factors pushing up copper prices are, the global economic recovery and the prospect of promoting a green energy revolution, China’s entry into the peak demand season, a weaker dollar, and supply risks in Chile, the world’s largest copper exporter. Mining unions in Chile are threatening protest action if the government does not abandon its intention to prevent nationals from drawing more pensions early, and workers at Chilean ports have called for a general strike.
The 7-year U.S. bond tender failed to reverse the rising trend of U.S. bond yields 10-year rose above 1.62% to a one-week high
European government bond prices continued to fall across the board on Tuesday, with yields rising further. British 10-year benchmark Treasury yields rose 1.8 basis points to 0.774% during the day; German bund yields rose 0.4 basis points to -0.294% during the same period. Among the countries, the yield of British debt rose the most, and the German bond rose the least.
7-year U.S. bond tender results were announced, the U.S. 10-year benchmark Treasury yield once fell to 1.60% below, and then continued to climb, rising above 1.62% to refresh the week’s high, up by more than 5 basis points during the day.
Yields on U.S. bonds of all maturities continued to rise on Tuesday. By the end of the day in New York, the yield on the 10-year U.S. bond was slightly above 1.62%, up 5.5 basis points intraday. yields on the 30-year and 5-year U.S. bonds also rose more than 5 basis points intraday, and the 2-year rose more than 1 basis point.
Dollar index off eight-week low Ether once rose 10% Bitcoin broke $55,000 once up more than 5% Offshore yuan fell nearly three years high
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies, generally remained up, only European stocks mid-day, U.S. stocks had turned down before the market, European stocks had risen above 91.07 in early trading to refresh the daily high, up nearly 0.3% during the day, U.S. stocks had approached 91.00 at lunchtime, out of the intraday trough since the beginning of March set by Monday’s drop below 90.69.
By the close of U.S. stocks on Tuesday, the dollar index was slightly below 90.90, up nearly 0.1% intraday; the Bloomberg Dollar Spot Index rose 0.2%.
The offshore Chinese yuan (CNH) ended a two-day streak against the dollar at 6.4804 yuan at 5:59 p.m. GMT on 28th, down 80 pips from Monday’s New York end-of-day high set on Monday since June 18, 2018.
Mainstream cryptocurrencies continued to rise collectively on Tuesday, with Ripple (XRP), the fourth largest cryptocurrency by market capitalization, up nearly 6 percent by the close of U.S. trading, CoinMarketCap data shows, while Coin On Coin (BNB), the third largest cryptocurrency, rose more than 4 percent and Dogcoin (DOGE) rose nearly 0.7 percent.
Bitcoin (BTC) had risen above $55,300 in early U.S. trading, setting a new intraday high for the last five days, up more than $3,000 from the intra-day low, a percentage gain of more than 5%, with U.S. stocks closing slightly above $55,000, a cumulative gain of nearly 2% in the last 24 hours.
Ether (ETH), the second largest cryptocurrency by market capitalization after Bitcoin, rose above $2,680 to a new intraday record high in the U.S., up nearly 10% from the intraday low, with U.S. stocks closing above $2,640, up more than 6% in 24 hours.
Gold retreated, palladium two days in a row to a new record high
New York gold futures retreated, COMEX June gold futures closed down about 0.1%, giving back almost all of Monday’s gains. New York silver futures rose for two days in a row, COMEX May silver futures closed up 0.77%.
Other precious metals rose for three days in a row, NYMEX July platinum futures closed up 0.35%. NYMEX June palladium futures closed up $43.3, or 1.49%, at $2952.6 per ounce, closing at a new record high for the second day in a row.
Crude oil hit a one-week high U.S. oil rose more than 1%
International crude oil futures, which just ended a two-game winning streak, rebounded on Tuesday.
WTI June crude oil futures closed up $0.80, or 1.29%, at $62.94/barrel, a new high for the main contract closing since last Monday, April 19; Brent June crude oil futures closed up $0.31, or 0.47%, at $66.42/barrel, a new closing high since April 20.