Most U.S. sectors continued to move higher, although Tesla continued to fall and chip and biotech stocks lagged, but some leading technology stocks such as Apple and Amazon rose. The energy sector weighed on the broader market again due to the impact of falling crude oil on news of the UAE’s plan to sell oil unilaterally and wildly. All three major U.S. stock indexes had fallen during the day before the Federal Reserve released the minutes of its June meeting.
The UAE’s intention to increase production prompted investors to be bearish on crude oil in the short term as inflation expectations retreated. The market fears that reflationary trading may be hit, traders cut positions betting on Fed monetary tightening, U.S. bond prices rose further and yields continued to fall. 10-year U.S. Treasury yields fell below 1.3% for the first time since February, continuing to set new lows for more than four months.
The minutes of the June meeting showed that Fed policymakers believe that the economy continues to make progress on the path to meet the threshold for QE tapering, suggesting that tapering QE time earlier than they had previously expected, at which it was discussed whether to reduce purchases of MBS before buying fewer U.S. Treasuries. After the release of the minutes, U.S. stocks and U.S. Treasuries reacted relatively calmly, U.S. stocks rose slightly, and the dollar index, which had hit a three-month high in early trading, retraced most of its intraday gains.
A number of popular Chinese stocks continued to fall on the regulatory news. DDT, which had both its app and app taken down, fell for a third straight session, falling nearly 8% at one point during the session, easing from Tuesday’s drop of more than 20%. China’s General Administration of Market Supervision fined Ali, Tencent, Suning and other companies involved in twenty-two Internet acquisitions 500,000 yuan each for violating anti-monopoly laws; the director of the General Administration of Market Supervision’s anti-monopoly bureau said a breakthrough was made in anti-monopoly enforcement in the platform economy. Ali and Tencent ADR fell over 1% and 2% respectively. CCA reviews six major chaos in out-of-school teaching and training institutions, suggesting that more than 60% of out-of-school training institutions are not fully licensed, naming New Oriental for the second time; New Oriental and other education stocks plunge. Xiaopeng Auto, which broke on its first day of trading in Hong Kong and eventually closed flat, fell more than 6% intraday, while the other two new energy car companies, Azera and Ideal Auto, also plunged.
Most cryptocurrencies, including bitcoin, rallied. Unaffected by a stronger dollar. Among commodities, while crude oil continued to fall on internal OPEC+ divisions highlighted by UAE news, copper rebounded strongly after Tuesday’s selloff and most industrial metals rallied; precious metals remained mixed, with silver dipping further and gold standing at the important psychological barrier of $1,800 for the first time in three weeks, thanks to lower U.S. bond yields spurring gold buyers’ interest.
In European markets, lower European bond yields continued to hit bank stocks, but pushed technology stocks further higher. Banks fell against the market with oil and gas and travel stocks. German software giant SAP, Europe’s largest technology company by market capitalization, which was upgraded to buy by Bank of America, surged, and the pan-European stock indexes, which just ended a three-day rally, rebounded after a big rebound in mining stocks, which led Tuesday’s losses. Among the national stock indexes, the German stock index led by the strong support of SAP.
The Nasdaq edged up still new highs Apple Amazon new highs Tesla again fell more than 2% Energy sector again led the S&P small caps and mid-caps continue to underperform the broader market
The three major U.S. stock indexes opened collectively higher, all turning lower less than an hour after the opening bell. The S&P 500 index fell when it set a new daily low, the Dow Jones Industrial Average fell more than 140 points when it set a new daily low, and the S&P both turned up at the end of the morning session after maintaining gains. The Nasdaq Composite Index rose more than 0.6% when it hit a new intraday high at the beginning of the session, and turned up at the end of the morning session, and then turned down again at lunchtime.
After the release of the Fed minutes, the Nasdaq turned up, the S&P and the Dow rose to expand, the S&P hit an intraday high when up more than 0.4%, the Dow rose more than 130 points when the new daily high.
Eventually, the three major stock indexes collectively closed up, although the Nasdaq rose slightly by 0.01%, but closed at 14,665.06 points, closing a new high for the third consecutive day. The S&P closed up 0.34% at 4358.13 points, erasing the largest decline of more than two weeks set on Tuesday, refreshing the record high set on Friday. The Dow closed up 0.3% at 34,681.79, erasing half of Tuesday’s losses and approaching the record high set on Friday.
Small-cap stocks are still losing ground to the broader market, with the value-cap-dominated Russell 2000 failing to reverse after turning lower early in the session, closing down 0.95%. The technology-heavy Nasdaq 100 index closed up 0.16%.
Dow components, Apple, 3M, Honeywell, etc. rose more than 1%, but Boeing fell more than 1%. Among the S&P 500 components, Oracle rose more than 3%, setting a new all-time high. The S&P 500’s 11 major sectors, only two closed down on Wednesday, energy fell more than 1.7%, led by the second consecutive day of losses, telecommunications services fell slightly by 0.1%. Rising sectors, up nearly 1.4% in health care and real estate led the way, materials and utilities rose about 1%, essential consumer goods, industrial and financial are up slightly less than 0.1%.
FAANMG six major technology stocks, again rose more than 1% of Apple closed up 1.8%, a new closing high, the best performance, Tuesday closed up more than 4% of Amazon rose nearly 0.6%, a new high, Microsoft rose more than 0.8%, Google parent company Alphabet rose more than 0.2%; Nifty fell more than 1%, the early turn down Facebook fell more than 0.6%. Tesla, which turned lower at the beginning of the session, fell more than 2% for the second day in a row and remained at the bottom of the blue-chip technology stocks.
The semiconductor and biotech sectors both fell more than 1%, underperforming the broader market, with chip stocks Ceres and AMD down more than 4%.
Popular Chinese stocks continued to lose ground, with Chinese ETFs KWEB and CQQQ down nearly 2% and more than 0.2%, respectively. Drops, which closed down nearly 20% on Tuesday, closed down 4.6% on its fifth day of trading; Popman Culture, also down more than 16% on its fifth day of trading, also eased from Tuesday’s more than 40% drop. Among the education stocks, New Oriental closed down more than 9%, Good Future fell more than 6%, and High Way fell more than 4%. Among the new energy car stocks, Xiaopeng car fell more than 5%, Azera car fell more than 8%, ideal car fell more than 4%. three BAT giant, Baidu and Tencent ADR fell more than 2%, Alibaba fell 1.7%. However, Tuesday’s rise of more than 6% microblogging continued to rise, closing up more than 3%, Jingdong rose more than 0.4%.
In Europe, the European Stock Exchange 600 index hit a new high since June 16 and the largest closing gain since June 23, SAP rose more than 3% and was the best performing component. Only travel and leisure, oil and gas and banking closed lower in all sectors on Wednesday. Tuesday’s decline of more than 2.5% fell the top mining stocks in the sector of basic resources rose more than 2%, far ahead of other sectors. In addition to the two-day decline in the Spanish stock index, the main European stock indexes rose on Wednesday, German stocks rose more than 1%, the largest gain in seven weeks.
The 10-year U.S. bond yield fell below 1.3% intraday for the first time since February
U.S. 10-year benchmark Treasury yields continue to fall, Tuesday U.S. stocks in early trading once fell below 1.30%, a new low since February 19, for the first time since February this year fell below 1.30%, for the second consecutive day since February intraday low, to the U.S. stocks close close close to 1.32%, intra-day drop of 3 basis points, in the lowest level since February 18 at the same time.
European government bonds also continued to rise in price on Wednesday. The yield on the U.K. 10-year benchmark Treasury note fell 3.4 basis points to 0.6% during the day; the yield on the German bund fell 3 basis points to -0.298% during the same period.
U.S. oil fell more than 3% intraday to close at a three-week low but narrowed nearly half of its losses
International crude oil futures fell for a second straight day. U.S. WTI crude oil once approached $71 in early U.S. trading and fell more than 3% intraday, while Brent crude oil had fallen below $73 in the same period, down nearly 2.6% intraday, both setting new intraday lows of about three weeks, before narrowing losses.
WTI August crude oil futures closed down 1.59% at $72.20/barrel, a new low since June 18 for the instant contract close; Brent September crude oil futures closed down 1.47% at $73.43/barrel, a new low for the main contract close since June 17, and U.S. oil closed down less than Tuesday. Tuesday U.S. oil and cloth oil closed down 2.38% and 3.41%, respectively, the largest closing losses since May 19.
U.S. gasoline and natural gas futures also both fell for a second straight day, falling further off more than six-year and nearly three-year highs, respectively. nyMex August gasoline futures closed down 1% at $2.206 per gallon, after hitting a new closing high for the spot month contract since Oct. 28, 2014, on Friday. nyMex August natural gas futures closed down 1.1% at $3.596 per million British thermal units, as of Friday for a fourth straight day at a new high since October 2018.
The dollar index hit a three-month high Bitcoin rallied but failed to stand firm at $35,000 Ether rose above $2,400 intraday to hit a nearly three-week high
The ICE Dollar Index (DXY), which tracks the exchange rate of a basket of six major currencies of the U.S. dollar, had fallen below 92.50 during the European session to set a new daily low, down more than 0.1% during the day, and has since continued to move upward, with U.S. stocks turning up before the bell, and U.S. stocks once rose above 92.80 in early trading, refreshing the intraday high set on Friday since early April, up more than 0.3% during the day. After the release of the Fed minutes, the dollar index quickly fell to 92.60, giving back most of the day’s gains, and rallied late in the day.
By Wednesday’s U.S. stock market close, the dollar index was above 92.70 at 92.732, up about 0.2% intraday; the Bloomberg Dollar Spot Index rose 0.1%, up for three consecutive trading days, the longest streak of gains since July 1.
Bitcoin (BTC) reversed the momentum of consecutive days of decline, European shares had risen above $35,000 during the day to refresh the daily high, compared with the early Asian market intraday highs back up more than $1000, a percentage increase of more than 4%, since then, although some fall, but stood firm at $34,000 a line, the U.S. shares closed above $34,000, up nearly 1.9% in the last 24 hours.
Ether (ETH), the second largest cryptocurrency in terms of market capitalization after Bitcoin, had briefly risen above $2,400 at the beginning of the European session, breaking through this barrier intraday for the first time since June 17, and was firmly above $2,300 at the close of the U.S. session, up nearly 2% in 24 hours.
CoinMarketCap data show that most of the mainstream cryptocurrencies rebounded on Wednesday, and by the end of the U.S. stock market, the fourth largest cryptocurrency in terms of market capitalization, coinancoin (BNB), rose nearly 6% in the last 24 hours, the top gainer in mainstream cryptocurrencies, the 13th largest cryptocurrency, bitcoin cash (BCH), rose 2%, the 14th largest cryptocurrency, litecoin (LTC), rose more than 1.5%, the sixth largest cryptocurrency (XRP) rose nearly 1%, the fifth largest cryptocurrency Cardano (ADA) rose more than 0.6%, but the seventh largest cryptocurrency Dogcoin (DOGE) fell more than 0.4%.
London-copper hits biggest two-week gain off two-week trough, London-tin hits 10-year high, gold rises above $1,800 for first time in three weeks in five straight days
London base metals futures rose for the most part on Wednesday. Copper, which just hit its biggest drop in more than two weeks on Tuesday, rebounded, closing up more than 1.5%, its biggest gain since June 23, coming out of a two-week low hit on Tuesday. Nickel also rebounded, coming off a two-week low. Zinc ended a two-day losing streak and hit a one-week high. Tin rose for five days in a row, hitting a 10-year high for three days in a row. Aluminum fell for three days in a row, hitting a new low of more than a week; lead just ended a two-day losing streak fell back.
In precious metals, New York gold futures closed up for five consecutive trading days, continuing to refresh the longest streak since May 20, hitting a new high of about three weeks. comex August gold futures closed up 0.4% at $ 1802.10 per ounce, the second consecutive day to hit a new closing high since June 16, the first time since June 16 closed above the $ 1800 mark. New York silver futures closed down 0.2%, and platinum both fell for a second consecutive day. Palladium closed up 1.9% for the third consecutive day.
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