U.S. bond prices retreated ahead of the Federal Reserve’s monetary policy meeting this week, with the 10-year U.S. bond yield rebounding to 1.50% intraday, coming off back-to-back three-month lows set last Thursday and Friday. The dollar index, which posted its biggest weekly gain in a month last week, also retreated.
U.S. stocks rallied for a while as technology stocks stood alone. While U.S. bond yields rallied, U.S. bank stocks fell in tandem after JPMorgan CEO warned of a sharp 38% year-over-year decline in second-quarter trading revenue. The financial sector was the biggest downside driver for the broader market. The S&P struggled to close higher by virtue of a late-day pull-up. Most of the retail holdout stocks that shook sharply last week fell, but AMC Theatres continued to record double-digit gains.
Bitcoin welcomed the positive news, hitting a new intraday high of more than three weeks and standing at the $40,000 mark for the first time in more than two weeks, with 24-hour gains of more than 10% on some platforms. Musk, the “godfather of cryptocurrency” and CEO of Tesla, said over the weekend that Tesla will resume accepting bitcoin payments for cars when miners reach a reasonable percentage of clean energy use of about 50% and future trends are positive. Hedge fund manager Paul Tudor Jones reiterated his view from last year that “bitcoin is a good hedge against inflation” and praised bitcoin as an ideal portfolio diversification tool with a market demand for storing wealth.
In commodities, crude oil futures were mixed, with U.S. oil and Brewer’s oil hitting new intraday highs of more than two-and-a-half years and two years, respectively, but fell during the session, with U.S. oil eventually closing lower. The U.S. Commodity Futures Trading Commission (CFTC) announced on Friday that hedge funds and other speculators last week held a net long position in crude oil to a new high of about three years. Gold continued to fall under pressure from a pickup in U.S. bond yields, falling to a one-month low. Most base metals such as LSE rose, but LSE copper resumed its decline, losing the $10,000 barrier it recovered just last Friday.
In European markets, thanks to Shell’s surge in the oil and gas sector led by the pan-European stock index for the seventh consecutive session of record highs, but the auto sector buck the market to lead the decline, only Germany’s stock index closed lower among European countries.
The Dow ended a two-session positive streak with the Nasdaq hitting a record high and the S&P turned up late for another record high. The IT sector led the way with the financial sector leading the way with AMC soloing retail holdout stocks
The three major U.S. stock indexes were mixed, with the best-performing Nasdaq Composite Index only having fallen briefly at the beginning of the session, and staying up for most of the rest of the day, rising nearly 0.5% at midday when it hit a new intraday high since April 29. The S&P 500 opened slightly higher but quickly turned lower, and has continued to move lower since then, falling away from the intraday highs set on Friday, down more than 0.3% at the new daily low. The Dow Jones Industrial Average opened lower, down more than 200 points at the end of the morning session and down nearly 270 points at midday when it hit a new intraday low since May 21.
The three major indices climbed collectively at the end of the day, the Dow narrowed its losses, the S&P turned up, and finally only the Dow closed lower, the Nasdaq and the S&P rose for three consecutive days. The Dow closed down 85.85 points, a percentage drop of 0.25%, at 34,393.75 points, ending two days of consecutive gains. The Nasdaq closed up 0.74%, closing at 14,174.14 points, a new record closing high set on April 26, as of Friday, last week a total of three days since the end of April new highs. The S&P closed up 0.18% at 4255.15 points, a new closing high for the second consecutive day.
Small-cap stocks failed to continue the trend of outperforming the broader market on Friday, with value stocks dominating the small-cap index Russell 2000 turning down in early trading and closing down 0.41%, up 1% on Friday. Technology-heavy Nasdaq 100 index closed up 0.93%, outperforming the broader market.
Of the 11 major sectors in the S&P 500, one closed higher and five closed lower on Monday. Up in the sector, up more than 1% of the information technology (IT) is leading, followed by more than 0.7% of telecommunications services, the bottom of the rise is less than 0.1% of health care, utilities and non-essential consumer goods are up more than 0.1%. Declining sectors, down more than 1% of the materials and finance led the decline, the plate had fallen more than 1% of the energy closed down nearly 0.4%, the smallest decline was down more than 0.1% of the essential consumer goods.
Dow components, JPMorgan Chase fell 1.7%, Goldman Sachs also fell more than 1%, but the two technology stocks Apple and Salesforce (CRM) rose more than 2%. By the close of trading, JPMorgan and Citi were the top five U.S. banks in terms of losses.
Leading technology stocks were up, with Apple and Nifty up more than 2 percent, Facebook and Amazon up more than 1 percent, and Google parent Alphabet and Microsoft up nearly 0.8 percent. Tesla rose more than 1%.
Other new energy vehicle concepts also rose mostly, with Tucson Future (TSP) up 19 percent, Xiaopeng Auto up more than 2 percent, Azera up 1.9 percent and Ideal Auto up nearly 0.5 percent. But solid-state battery maker Quantumscape (QS) fell more than 4%. Electric truck startup Lordstown Motors (RIDE) closed down nearly 19%, after falling nearly 22% at one point in the session. The division announced on Monday the departure of both its CEO and CFO, having warned last week that it would run out of cash and could be forced to shut down in the next 12 months due to heavy debt.
Chips also rose, with the semiconductor index and semiconductor ETF SOXX up more than 1% and individual stocks CCMP and LSCC up more than 3%.
Blockchain stocks moved higher, led by bitcoin. Mining giants Kannan Technology and Yibang International rose more than 18% and 10%, respectively, while BIT Mining (BTCM) rose 15%. MicroStrategy (MSTR), a staunch bitcoin holder, rose nearly 16%.
Retail holdouts were mostly lower, with AMC Theatres closing up more than 15% for the second day in a row after Friday, while GEO Group (GEO), which closed up nearly 5% on Friday, fell more than 7%, Clover Health (CLOV), which closed up 4.8% on Friday, fell more than 2%, GameStop (GME), which closed up nearly 5.9% on Friday, fell more than 1%, and closed up 2.7% on Friday Koss Electronics (KOSS) closed slightly lower.
Top Chinese stocks were mostly higher, with Chinese ETFs KWEB and CQQQ up nearly 0.7% and about 0.3%, respectively. Among education stocks, NetEase Youdao and Gaotu rose more than 10%, New Oriental gained more than 2% and Good Future rose 2%, while 51talk fell nearly 0.4%. Other stocks, the first day of listing on Friday closed up nearly 96% of the BOSS direct employment listing closed up nearly 8%. Baidu and Alibaba rose more than 1%, Tencent ADR slightly down.
In Europe, the Euro Stoxx 600 index closed at a record high for the seventh consecutive day, led by a 2% rise in the oil and gas sector, stocks in Royal Shell rose nearly 2.7%, the media said the division is evaluating the possibility of selling its stake in the largest U.S. oil fields. But the auto sector fell more than 1% against the market leader, dragging the German stock index that just ended a four-day losing streak on Friday to restart the decline. Only German stocks closed lower among European countries.
Dollar index falls off one-week high Bitcoin rises above $40,000 intraday to a more than three-week high
The ICE U.S. Dollar Index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, had regained its daily high of 90.60 in early Asian trading, close to the one-week high set on Friday when it approached the high of a month ago, and edged up during the day, but stayed down for most of the day as U.S. stocks approached 90.41 to 90.412 when it set a new daily low before the bell, down nearly 0.16% during the day.
By the close of U.S. stocks on Monday, the dollar index was slightly below 90.49, down 0.07% intraday; the Bloomberg Dollar Spot Index was up 0.1%, at a high since June 3.
Bitcoin (BTC) continued to rise, Monday U.S. stocks in early trading, for the first time since May 27 intraday rose above $40,000, the highest rose above $41,000, a new high since May 21, some platforms such as Coinan rose more than 10% in 24 hours, since then the price of the currency has fallen back, the U.S. stocks fell below $40,000 at lunchtime, the U.S. stocks closed below $39,700, up more than 5% in the last 24 hours.
The second largest cryptocurrency after Bitcoin in terms of market capitalization, Ether (ETH) regained $2,600 in the U.S. stock market on Monday, hitting a new intraday high in the last four days since last Thursday, June 10, with some platforms such as Coinan up close to 8% at one point in 24, with U.S. stocks closing below $2,540, up nearly 4% in 24 hours.
CoinMarketCap data show that mainstream cryptocurrencies rose across the board on Monday, to the U.S. stock market close, market capitalization of the 11th and 12th largest cryptocurrency Bitcoin Cash (BCH) and Litecoin (LTC) in the last 24 hours are up nearly 5%, the seventh, fourth and fifth largest cryptocurrency Ripple (XRP), Coinan (BNB) and Cardano (ADA) are The sixth largest cryptocurrency, Dogecoin (DOGE), rose nearly 0.6%.
European bonds end four-game winning streak, 10-year U.S. bond yields rebound to 1.5% intraday, coming off three-month lows
European government bonds fell in price on Monday, with the exception of British bonds, which reversed a four-day price streak. British 10-year benchmark Treasury yields rose 3.3 basis points to 0.741% during the day, erasing most of Friday’s decline; German bund yields rose 2.3 basis points to -0.251% during the same period.
U.S. 10-year benchmark Treasury yields have continued to climb since midday in Europe, U.S. stocks regained 1.50% at midday, up about 5 basis points during the day, out of the trough since early March, which was set by the intraday drop below 1.43% on Friday, to close slightly below 1.50% in U.S. stocks, up more than 4 basis points during the day.
U.S. oil retracted more than 1% intraday gains to turn down temporarily parted two-and-a-half-year highs, and then hit a new two-year high in the cloth oil
International crude oil futures had risen more than 1% during the day on Monday, but U.S. stocks retreated during the day.
U.S. WTI crude oil had risen to $71.78 in early U.S. trading, setting a new intraday high since October 2018, up more than 1.2 percent intraday, before turning down and turning lower in midday trading. Brent crude had risen above $73.60 during the European session, setting a new two-year high and up nearly 1.3% intraday, before giving back most of its gains from early U.S. trading.
Finally, WTI July crude oil futures closed down $0.03, or 0.04%, at $70.88 per barrel, falling off the closing high for the main contract since Oct. 16, 2018, set on Friday, but closing above $70 for the third straight day. Brent August crude futures closed up $0.17, or 0.23%, at $72.86/barrel, a second straight day of new closing highs for the main contract since April 30, 2019.
Gold hits one-month low on two consecutive negative days, copper loses $10,000 to fall off more than one-week highs, and tin hits another 10-year high
In precious metals, New York gold futures fell for the second consecutive session. COMEX August gold futures closed down 0.7% at $1,865.90/oz, a new closing low for the main contract since May 14.
New York silver futures closed down 0.4%, ending a three-day streak of gains and falling off the highs set on Friday since June 2. Platinum closed up 1.2%, up for a second straight day and further out of a three-month low hit last Thursday. Palladium closed down 0.9 percent, bidding farewell to a two-day winning streak.
London base metals futures were mostly higher on Monday, but copper, which had just regained $10,000 on Friday, fell off that mark again, closing at $9,972 per ton, down from its high since June 2. Lunar aluminum and nickel rallied, hitting three-month and four-week highs, respectively. Zinc closed flat, at a more than one-week high. LEN tin and LEN lead rose for two days in a row, with LEN tin closing at $31,651/mt, another 10-year high, and LEN lead hitting another new one-week high.
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