U.S. economic data was mixed: Markit manufacturing PMI hit a record high in June, but new home sales unexpectedly hit a more than one-year low in May, hit by high home prices. U.S. stocks continued to move in a narrow range. Stocks in sectors like retail, energy and financials, where the economy is back to work favorably, advanced, and small-cap value stocks led the broader market, but most leading tech stocks like Google, Apple and Microsoft retreated, with the utilities sector leading the drag on the broader market. Hawkish speeches from two top Fed officials hit U.S. stocks intraday.
During the midday session, Atlanta Fed President Bostic, who has FOMC voting rights this year, expects the Fed to start raising interest rates at the end of next year and twice in the year after, i.e. 2023, after which the S&P and Nasdaq turned down in the short term, and the three major U.S. stock indexes once fell collectively. By the end of the day, the year after the FOMC voting rights of the Dallas Fed President Kaplan also expected that the Fed will raise interest rates for the first time next year, and said the U.S. economy to reach the Fed’s tapering QE bond purchase requirements may be faster than everyone expected, after which the U.S. stock indexes fell collectively, the S&P turned down again, and the Dow both closed lower.
Among individual stocks, Freddie Mac (FMCC) and Fannie Mae (FNMA) dived intraday, falling more than 40% after the U.S. Supreme Court ruling may delay the process of re-privatization of the “two houses”. Among Chinese stocks, Xiaopeng Auto, which passed its listing hearing on the Hong Kong Stock Exchange and is headed for a second listing in Hong Kong, rebounded strongly after Tuesday’s big drop. Top Chinese stocks overall were far ahead of the broader market.
The dollar index, which is expected to start raising interest rates next year by two Fed officials, turned higher at midday after hitting a four-day low during the session. 10-year U.S. bond yields recovered and continued to move away from four-month lows, with more gains in the rate-sensitive 2-year yield.
“Bull Queen” Cathie Wood’s Ark Invest main fund disclosed buying 1 million shares of Grayscale Bitcoin Trust, the world’s largest bitcoin investment fund, and more than 210,000 shares of Coinbase, the largest U.S. cryptocurrency exchange, with Coinbase up more than 3.6% intraday. 3.6% as cryptocurrencies like bitcoin rallied and MicroStrategy (MSTR), a business intelligence software company that holds more than 100,000 bitcoins in total, had risen nearly 6% at midday but turned lower in late trading, failing to end a two-day losing streak.
Precious metals such as gold rebounded and base metals such as copper continued to rise on the back of the dollar coming off two-month highs. Crude oil futures rebounded after the official U.S. release of last week’s much larger-than-expected drop in crude oil inventories, which totaled a 13-month low, with Brent crude oil topping $75 per barrel for the first time in more than two and a half years.
In European markets, European stocks retreated, while European bond prices rebounded and yields fell. Eurozone composite PMI hit a 15-year high in June, but market concerns about inflation were greater, with commentary suggesting that a strong economic rebound was accompanied by further signs of increased price pressures.
S&P drops off one-week highs, Nasdaq hits back-to-back record highs, Tesla up over 5% among leading tech stocks, big rally in Chinese new energy auto stocks
All three major U.S. stock indexes opened slightly higher, and in the midday session, the S&P 500 and Nasdaq Composite turned lower in the short term after Atlanta Fed President Bostic’s speech collectively set a new daily low. The Dow Jones Industrial Average had turned down in early and midday trading, and had fallen nearly 60 points during the day after Bostic’s speech, with a percentage drop of less than 0.2%. The S&P rose more than 0.2% in early trading when it hit a new intraday high for the second consecutive day since June 15, and the Nasdaq rose more than 0.4% in early trading when it hit a new all-time intraday high for the second consecutive day.
After Kaplan’s speech at the end of the day, all three indices fell significantly, the Nasdaq gave back most of its gains, and the S&P turned lower. Finally, the three major stock indexes only the Nasdaq closed up, up three days in a row, the Dow and the end of the S&P turned down to end a two-day streak of gains. The S&P closed down 0.11% at 4241.84 points, down from a new closing high set on Tuesday since June 15. The Nasdaq closed up 0.13% at 14,271.73 points, closing at a new record high for the second consecutive day. The Dow closed down 0.21 percent at 33,874.24 points.
Small-cap stocks outperformed the broader market, with value stocks dominating the small-cap index Russell 2000 overall opening high and ending the day by giving back more than half of its gains, closing up 0.33%. The technology-heavy Nasdaq 100 index closed slightly higher by nearly 0.03%.
S&P 500 of the 11 major sectors, only three sectors closed on Wednesday, up more than 0.6% of non-essential consumer goods led the second consecutive day of gains, finance and energy rose nearly 0.3%. Declining sectors, down about 1% of the utilities led the decline, followed by a decline of more than 0.6% of materials and down nearly 0.6% of consumer goods, the smallest decline was down more than 0.1% of information technology.
Leading technology stocks were mixed, Tesla rose more than 5%, the best performance. FAANMG six major technology stocks, Nifty closed up nearly 0.8%, Facebook rose nearly 0.5%, while Apple fell more than 0.2%, Google parent company Alphabet fell nearly 0.2%, Amazon fell slightly by 0.05%, Microsoft fell slightly by 0.09%, falling off the record closing high set on Tuesday. Most chip stocks rose, with the Semiconductor Sector ETF up 0.4%, Chiken Photoelectric up 6%, Micron Technology and Western Digital up more than 1%.
Freddie Mac (FMCC) closed down nearly 37% and Fannie Mae (FNMA) closed down more than 32% after the U.S. Supreme Court ruling hit.
Bitcoin and blockchain-related concept stocks, Monday and Tuesday closed down nearly 10% and more than 5% MicroStrategy (MSTR) closed down 0.13%; Coinbase, which closed slightly lower on Tuesday, rose nearly 1.6%. Square and PayPal rose more than 1% and nearly 0.5%, respectively. The two major miner producers were mixed, with EBON (EBON), which closed down 8% on Tuesday, up more than 0.6%, and CAN (CAN), which fell 5.8% on Tuesday, down nearly 0.8%
Top Chinese stocks generally outperformed the broader market, with Chinese ETF CQQQ up more than 2% and KWEB up nearly 2%. Among the three major new energy auto stocks, Ideal Auto, which fell nearly 4% on Tuesday, closed up more than 7%, Xiaopeng Auto, which fell more than 8% on Tuesday, closed up 4%, and Azera, which fell more than 5% on Tuesday, rose nearly 3%. Among brokerage stocks, Tiger Securities rose 10% and Fidelity Securities gained 5.7%. Education stocks also rebounded, with Gao Tou, Fluent, and Red Yellow Blue up more than 4%, New Oriental up nearly 4%, and Good Future and NetEase Youdao up more than 2%. Audio and video, content stocks, Beili Beili rose 3.8%, microblogging, Tiger Sohu rose 3%, Zhihu, Aiki Yi rose more than 1%. In addition Pindo rose 2.8%, Alibaba rose nearly 1.7%, Tencent ADR rose 1%, Baidu rose 0.8%, but the first day of listing rose more than 13% full help the next day fell more than 2.5%, Jingdong fell more than 0.2%.
European stocks, the European Stoxx 600 index said goodbye to two days of consecutive gains, all back to Tuesday’s gains. Various sectors, only mining stocks in the sector of basic resources rose more than 0.6% and a slight increase of 0.02% of oil and gas two closed up, down more than 1.5% of the utilities and down 1.3% of retail led the decline. Major European stock indexes retreated collectively, with German and Spanish stock indexes both down more than 1% again after last Friday.
The dollar index turned up during the session after hitting a four-day low. Bitcoin once rose above $34,000, and dogcoin rose more than 10%.
Tracking the dollar six major currencies a basket of exchange rates of the ICE dollar index (DXY) European shares turned down mid-day after continued downward, U.S. stocks had fallen below 91.52 at the beginning of the session, refreshing the last four trading days to a low, down more than 0.26% during the day, and then gradually rebounded, U.S. stocks turned up at lunchtime, once close to 91.80, still out of last Friday rose above 92.40 set by the intraday high since early April.
By Wednesday’s U.S. equity close, the dollar index was above 91.80, up a modest 0.08% for the day; the Bloomberg Dollar Spot Index was almost unchanged from Tuesday’s level.
The offshore yuan (CNH) ended an eight-day losing streak, with the offshore yuan at 6.4781 against the dollar at 5:59 p.m. GMT on the 24th, up 25 points from Tuesday’s end of trading in New York, but once down to 6.4948 during the session, a new intraday low since April 23.
Bitcoin (BTC) U.S. stocks had risen above $34,800 before the bell, erasing all Tuesday’s losses, up more than $3,000 from the intra-day lows in early Asian trading, a percentage gain of nearly 10%, but the U.S. stocks continued to fall after the opening bell, the beginning of the day that fell below $34,000, down below $33,500 at lunchtime, the U.S. stocks closed above $33,000, up about 2% in the last 24 hours.
Market capitalization after bitcoin’s second largest cryptocurrency ethereum (ETH) U.S. stocks regained $2,000 before the bell, once rose above $2,040, refreshing the intraday high since Monday, up more than 12% from the daily low in early Asian trading, U.S. stocks fell below $2,000 in early trading, U.S. stocks closed below $1,930, up more than 1% in 24 hours.
CoinMarketCap data show that mainstream cryptocurrencies rebounded across the board on Wednesday, to the close of U.S. stocks, market capitalization rose two places to the sixth dogcoin (DOGE) in the last 24 hours accumulated about 16%, the best intra-day performance, market capitalization of the seventh largest cryptocurrency Ripple (XRP) accumulated more than 7%, the fourth largest cryptocurrency coin (BNB) rose more than 6%, the 13th largest cryptocurrency Litecoin (LTC) rose more than 4%, and the fifth and 12th largest cryptocurrencies Cardano (ADA) and Bitcoin Cash (BCH) both rose more than 3%.
European bonds rally 10-year U.S. bond yields away from four-month lows 2-year tops gains
U.S. 10-year benchmark Treasury yields had turned lower during the European session, falling back to below 1.47%, U.S. stocks turned up before the session, U.S. stocks once approached 1.50% during the session to refresh the daily high, up nearly 3 basis points during the day, clearly out of the four-month intraday trough set by the drop to below 1.36% on Monday, to about 1.49% at the close of U.S. stocks, up 2 basis points during the day.
By the end of the day in New York, U.S. bonds of all maturities, 10-year, 30-year and five-period U.S. bond yields rose more than 2 basis points during the day, with the 2-year rising more than 3 basis points, the top increase.
European government bonds in addition to British bonds rebounded in price on Wednesday, ending the trend of rising yields for several days. British 10-year benchmark Treasury yields rose 0.1 basis points during the day, at 0.78%; German government bond yields fell 1.4 basis points to -0.178% during the same period.
Brewer’s oil rises above $75 for the first time in more than two and a half years, reaching a record high for the second time this week
After a brief retreat on Tuesday, international crude oil futures resumed their rally, with Brent crude hitting a new high of more than two-and-a-half years for the second day this week and U.S. WTI crude approaching a high of more than two-and-a-half years.
The U.S. Energy Information Administration (EIA) released Wednesday that last week’s U.S. EIA crude oil inventories fell by more than 7.6 million barrels from a year earlier, more than double the market’s expected decline, the fifth consecutive week of decline, and more than 7 million barrels for two consecutive weeks, with total crude oil inventories falling to 459.1 million barrels, a new low since the week of March 6 last year.
The commentary said the reduction in crude oil supply reflects the strong economic recovery, but at the same time exposes the vulnerability of the lack of oil production. We are starting to see supply shortages pressuring prices, which is the reason for the strength in the oil market.
WTI August crude oil futures closed up 0.30% at $73.08 per barrel, closing above $73 for the third straight day, moving closer to the highest close for the spot contract since October 10, 2018, set on Monday, while Brent August crude oil futures closed up 0.39% at $75.19 per barrel, setting a new high for the spot contract since October 31, 2018, set on Monday. The spot-month contract closed above $75 for the first time since Oct. 31, 2018.
London-based copper hits biggest gain in nearly a month with three straight gains, first on $9,400 in a week Gold and silver rally both hit new one-week highs
London base metals futures rose for the second consecutive day on Wednesday. Copper, aluminum, zinc, nickel and tin rose for three days in a row, and copper regained $9,400 for the first time in a week, closing up 1.96% on Wednesday, the biggest gain in nearly a month. Aluminum and lead also rose two days in a row to a new one-week high. Nickel hit a new high of more than a week.
New York gold and silver futures both rebounded, erasing Tuesday’s losses. comex August gold futures closed up nearly 0.34% at $1783.40 per barrel, comex July silver futures closed up 1% at $26.11 per ounce, both closing at a new high since last Wednesday, June 16.
Platinum rose for three consecutive days, closing up 1.5% on Wednesday at $1,086.5/oz; palladium, which fell slightly on Tuesday, rebounded strongly, closing up 2.8% on Wednesday at $2,630.5/oz, also both hitting new highs since June 16.