Thursday’s U.S. May ADP private sector job creation hit a record high since June last year, and last week’s first jobless claims fell below 400,000 for the first time since the outbreak of the epidemic last year, with the ISM services index hitting a record high in May. The positive employment and services data sparked market concerns that the Fed may withdraw easing sooner than expected, with major U.S. stock indexes opening collectively lower. Commentary also suggested that the recent focus on U.S. relations with major powers such as Russia was a factor in the broad market crackdown.
The intraday media said that in exchange for Republican lawmakers’ support for the infrastructure package, the Biden administration proposed to introduce a minimum corporate tax rate of 15% instead of raising the corporate tax from 21% to 28% as it had previously planned for tax reform. The U.S. stock index has since narrowed its losses, with the Dow erasing more than 200 points of losses and turning up mid-session, but failing to retain its gains. The end of the U.S. stock market losses again expanded, the Dow turned down, leading technology stocks all down under the drag of the Nasdaq fell in front.
Some of Wednesday’s high retail hold stocks plunged: AMC Theatres, which had risen nearly 130% in Wednesday’s session, had fallen more than 40% in Thursday’s session, hitting the stop meltdown three times in half an hour, and turned up briefly at lunchtime, the division plans to sell as many as 11.55 million shares after the stock’s recent surge, as a way to repay loans and obtain acquisition funds; Koss Electronics (KOSS) and 3B Homes (BBBY) had fallen more than 30% and nearly 30% in the session, respectively fell more than 30% and nearly 30%; GameStop (GME) once fell more than 14%.
Except for Tesla, auto stocks all bucked the market. Workhorse (WKHS), an electric truck company, was up nearly 60% at one point, and by the close of trading, had accumulated a three-day gain of nearly 60% this month, with comments that the division’s high short position size has caused a recent surge of strong short interest among U.S. retail investors.
After the release of positive economic data, the dollar index and U.S. bond yields are up, gold and other precious metals fell together, gold and silver are down sharply, copper and other industrial metals for the first time in two weeks across the board. U.S. EIA crude oil inventories fell last week, but gasoline stocks unexpectedly increased instead of falling, international crude oil futures fell slightly, temporarily falling two-year highs.
Dow ends five-game winning streak, Nasdaq hits biggest drop in three weeks AMC and many other retail holdout stocks plunge Auto stocks outside Tesla buck market
The three major U.S. stock indexes opened collectively lower in early trading. The Dow Jones Industrial Average fell more than 260 points at the start of the session when it set a new daily low, turned higher at the end of the morning session and has since held gains. The S&P 500 index fell nearly 1% at the beginning of the session, almost erasing all losses at the end of the morning session, and slightly expanding losses at midday. The Nasdaq Composite Index fell 1.5% at the beginning of the session, down less than 0.6% at the end of the morning session, and expanded to about 0.8% at midday.
The end of the three major indexes fell and expanded, and the Dow turned down. Finally, the three major stock indexes closed down collectively for the first time since May 25. The Dow ended its five-day winning streak, closing down 23.34 points, or 0.07%, at 34,577.04 points, down from the closing high set for four consecutive days since May 10 as of Wednesday. The S&P closed down 0.36% at 4192.85, off the second-highest close ever set on Wednesday. The Nasdaq closed down 1.03% at 13,614.51, a new closing low since May 21 and its biggest closing loss since May 12.
Value-cap-dominated small-cap index Russell 2000 closed down 0.81%, having fallen nearly 1.8% during the day; technology-heavy Nasdaq 100 index 1.07%, showing the momentum of small-cap intraday leaders and technology stocks taking the lead in losing the broader market.
Wednesday’s high rise in retail hold stocks, Wednesday closed up nearly 100% AMC Cinemas closed down nearly 18%, Wednesday closed up nearly 70% Goss Electronics (KOSS) closed down more than 24%, Wednesday rose more than 30% Express closed down more than 19%, Wednesday rose more than 13% GameStop (GME) closed down more than 8%, while Wednesday rose more than 30% BlackBerry (BB) rose more than 4%.
Leading technology stocks fell together, Tesla closed down more than 5%, FAANMG six major technology stocks, Nifty closed down nearly 2%, Amazon and Apple fell more than 1%, Facebook fell more than 0.9%, Microsoft fell more than 0.6%, Google parent company Alphabet fell nearly 1%.
Auto stocks mostly bucked the market, Workhorse closed up more than 28%, Ford Motor rose more than 7%, Lordstown and General Motors rose more than 6%, Peng Motors, Ideal Motors and Honda U.S. shares rose more than 2%, Toyota U.S. shares rose more than 1%; while the afternoon session turned down Azera fell more than 0.6%.
Dollar index hits three-week high Bitcoin hits $39,000 for the first time in a week Dogcoin rises high and falls the next day
The ICE Dollar Index (DXY), which tracks the exchange rate of a basket of six major currencies in the U.S. dollar, climbed sharply from midday in Europe on Thursday, with U.S. stocks rising above 90.55 to 90.551 in early trading, a new intraday high since May 13 and up more than 0.7% on the day (Wednesday’s close was 89.909).
By Thursday’s U.S. stock market close, the dollar index was above 90.47, up more than 0.6% on the day; the Bloomberg Dollar Spot Index rose 0.7%, the highest in the U.S. stock market closing session since May 12.
Bitcoin (BTC) had risen above $39,000 during the European session once approaching $39,500, the first intraday breakthrough of $39,000 in a week, up more than $2,000 from the early Asian session intraday low, a percentage increase of more than 6%, the U.S. stock market closed at $38,600 above, up more than 2% in the last 24 hours.
The second largest cryptocurrency after Bitcoin market capitalization Ether (ETH) European shares rose above $2890 approaching $2900 during the day, also hit a new high in a week, up more than 8% from the intraday low, the U.S. shares closed above $2800, up more than 1% in 24 hours.
CoinMarketCap data show that most mainstream cryptocurrencies continued to rise on Thursday, by the end of the U.S. stock market, market capitalization of the fifth largest cryptocurrency Cardano (ADA) the recent 24-hour cumulative rise of more than 1.8%, the 14th largest cryptocurrency Litecoin (LTC) and the third largest cryptocurrency Coin An Coin (BNB) are up more than 1%, the 13th largest cryptocurrency Bitcoin Cash (BCH) (BCH) rose more than 0.8%, while the sixth largest cryptocurrency Dogcoin (DOGE), which rose more than 20% on Wednesday, fell more than 4.1%, and the seventh largest cryptocurrency Ripple (XRP) fell 0.2%.
European and U.S. Treasuries all fall, 10-year U.S. bond yield tested at 1.63%
European government bond prices mostly retreated and yields rose again, with British bond yields leading the rise. British 10-year benchmark Treasury yields rose 4.1 basis points to 0.841% during the day; German government bond yields rose 1.5 basis points to -0.183% during the same period. Only the Greek bond yield fell on the day, down 0.4 basis points during the day.
U.S. 10-year benchmark Treasury yields continued to rise during the European and U.S. trading sessions, the U.S. midday test of 1.63%, a new two-day high, up more than 4 basis points during the day, to the U.S. closing at 1.62% above, up about 3 basis points during the day.
Gold and silver both hit their biggest losses in three months Gold hit a new low of more than two weeks and silver a new low of nearly three weeks
New York gold futures, which had just rallied on Wednesday, quickly fell off nearly five-month highs, with COMEX August gold futures closing down 1.9% at $1,873.30 per ounce, a new low for the main contract closing since May 18 and the biggest drop in the main contract closing since Feb. 26.
New York silver and palladium futures both ended a four-day winning streak, with COMEX July silver futures closing down 2.58% at $27.477/oz, a new low since May 14 and the largest closing decline in the main contract since March 4.
NYMEX September palladium futures closed down 1.46%, hitting a new low since May 26. Platinum fell for a second straight day, with NYMEX July platinum futures closing down 2.53%, a new low since April 13 as well as the biggest drop since May 21.
Copper lost $10,000, hitting a new five-week low and the biggest drop in two weeks, while tin fell below $30,000 for the first time in a week
London base metals futures fell across the board Thursday for the first time since May 19. Copper and aluminum fell for three days in a row, with copper hitting its biggest drop in two weeks and closing below the $10,000 mark for the first time in a week, closing below $9,800 for the first time since April 26; aluminum hit a one-week low. Lunxiang fell away from a decade high, falling below the $30,000 mark for the first time in a week. Zinc and nickel ended a two-day and five-day streak, falling to nearly three-year and three-month highs, respectively.
Crude oil edges down, bids farewell to two-year highs, bunker oil holds steady at $70
International crude oil futures edged down, with U.S. WTI crude and Brent crude falling more than two-and-a-half years and a two-year high, respectively, while Brent oil held the $70 mark and remained above $71.
WTI July crude oil futures closed down $0.02, or 0.03%, at $68.81/barrel, hitting two consecutive days of main contract closing highs since Oct. 22, 2018, as of Wednesday; Brent August crude oil futures closed down $0.04, or 0.05%, at $71.31/barrel, hitting May 21 and 22, 2019, on Wednesday and Tuesday, respectively The main contract closed at a new high.