Monday’s stock market plunge to stimulate investors’ interest in bottoming out, U.S. stocks in the financial and industrial sectors led by the rebound, four consecutive days led by the energy sector finally back up, cyclical stocks rose more than growth stocks, small-cap stocks for the first time in more than a week far ahead of the broader market.
Investor fears eased, long-term U.S. Treasury prices fell, yields rebounded, the benchmark 10-year U.S. bond yields back on 1.20%, out of the low since February this year. Bank stocks, which were hit by the sharp drop in U.S. bond yields on Monday, rebounded strongly.
Among individual stocks, IBM, which reported the strongest year-over-year revenue growth in three years in the second quarter, had risen nearly 5 percent intraday. Airline, cruise and energy stocks, which plunged on Monday, rebounded. Halliburton, which reported its second consecutive quarterly profit, was up nearly 6 percent at one point; auto stocks such as Ford were mostly higher after U.S. government officials said they were starting to see signs of easing global semiconductor supply shortages, including a commitment by manufacturers to produce more chips for car companies. Amazon founder Bezos’ Blue Origin successfully sent Bezos himself into space, and Blue Origin rival Virgin Galactic, which made the founder’s space trip last week, was down nearly 9% intraday. After-hours Nifty reported second-quarter EPS earnings and projected new subscribers for the third quarter that were weaker than market expectations, with shares diving before rebounding after the bell.
While long bond yields rallied, the dollar continued to strengthen, with the dollar index hitting a new three-month high, indicating that there are still investors increasing bets on safe-haven assets due to epidemic concerns. Cryptocurrencies came under pressure to move further lower as the EU considered banning anonymous cryptocurrency wallets and capping cash payments, with bitcoin falling through $30,000 intraday for the first time in nearly a month.
Commodities mostly rebounded, with copper coming off a one-month low and tin near the all-time high set on Friday; crude oil rose more than 1%, bidding farewell to a nearly two-month trough, as the market expects the U.S. Department of Energy to report Wednesday that U.S. crude oil inventories fell for the ninth straight week last week; gold rose slightly, but silver continued to fall.
In the European market, European debt treasury prices mostly continued to rise, but the decline in yields moderated. Swiss banking giant UBS reported high profits for the second quarter, and two mining giants BHP Billiton and Anglo American Energy reported higher-than-market expectations for new production, supported by a rally led by financial and mining stocks, the pan-European stock indexes reversed a four-day losing streak.
The Nasdaq and Dow posted the biggest gains in two months and a month respectively, with industrials and financials leading the S&P small-cap index up 3%, outperforming the broader market for the first time in more than a week.
The three major U.S. stock indexes collectively opened higher, and all have risen more than 1% in early trading. The Dow Jones Industrial Average rose more than 600 points at the beginning of the afternoon session, up nearly 660 points at lunchtime when it set a new daily high, a percentage increase of more than 1.9%. The S&P 500 index rose more than 1.8% at midday to a new daily high. The Nasdaq Composite Index rose nearly 2% at lunchtime to a new daily high. Finally, the three major stock indexes ended two consecutive days of collective losses, all out of the closing lows set on Monday since June 23.
The Dow closed up 549.95 points, or 1.62%, at 34511.99 points, the largest closing gain since June 21, erasing most of Monday’s losses, which fell more than 700 points on Monday to the largest decline since October 28 last year. The S&P 500 closed up 1.52% at 4323.06 points, the largest closing gain since March 26, after closing down 1.59% on Monday. The Nasdaq closed up 1.57% at 14,498.88 points, its biggest closing gain since May 20, and closed down 1.06% on Monday, and the S&P both posted their biggest losses since May 12 this year.
Small-cap stocks led the broader market for the first time since last Friday, July 9, value stocks dominated the small-cap index Russell 2000 rose more than 2% in early trading, once expanded to more than 3% at lunchtime, closing up nearly 3%. The technology-heavy Nasdaq 100 index closed up 1.23%.
Dow components, Boeing, which fell nearly 5% on Monday, closed up 4.9%, and American Express, which fell more than 4% on Monday, closed up 3.7%; while Merck fell more than 1%. Monday, the S&P 500’s 11 sectors mostly rebounded on Tuesday, in addition to a slight decline of less than 0.1% of the essential consumer goods closed up, industry rose more than 2.7% to lead the way, followed by financial up more than 2.4%, energy, information technology, real estate, telecommunications services, health care are up more than 1%.
Bank stocks rebounded across the board, the five largest bank stocks, Monday fell more than 2% Morgan Stanley closed up more than 3%, Monday fell more than 2% Goldman Sachs rose more than 2%, Monday fell more than 3% JP Morgan Chase rose 1.8%, Monday both fell more than 2% Citi and Bank of America rose nearly 1.9% and more than 2%, respectively.
Aviation, cruise, energy stocks, Monday closed down more than 5% of Norwegian Cruise and Carnival Cruise Lines closed up more than 8% and 7%, respectively; Monday fell more than 4% of American Airlines rose more than 8%, Monday fell more than 5% of United Airlines rose more than 6%, Monday fell 2.8% of Southwest Airlines rose 6%, Monday fell more than 3% of Delta Air Lines rose more than 5%; Monday closed down more than 3% of Halliburton closed up more than 3%, Monday fell more than 5% of Marathon Oil closed up nearly 2%, down more than 3% on Monday, Exxon Mobil rose more than 1%.
Most auto stocks closed higher, Tucson Future rose more than 5%, Ford rose more than 4%, General Motors rose more than 3%, Tesla rose more than 2%. Three Chinese new energy vehicle stocks continued to close up, Peng car rose more than 2%, Azera car rose nearly 2%, ideal car rose more than 0.6%.
Among the more volatile stocks during the session, IBM closed up more than 1%, Virgin Galactic closed down more than 1%. In addition, Monday against the market rose more than 3% of Nvidia closed down nearly 0.9%, while the overall rise in chip stocks, semiconductor industry ETF SOXX rose more than 1%.
Most of the leading technology stocks rebounded, FAANMG six major technology stocks, only down more than 0.2% Nifty closed lower, Apple rose more than 2%, Facebook and Google parent company Alphabet rose more than 1%, Microsoft and Amazon closed up more than 0.8% and nearly 0.7%, respectively. After the bell, Nifty’s shares dived after the earnings announcement, once down nearly 6%, but have since turned up.
Top Chinese stocks mostly rose, with Chinese ETF CQQQ up nearly 0.5% and KWEB up 0.1%. Zhihu and RuiXing coffee rose more than 10%, Monday fell more than 9% of the New Oriental rose nearly 6%, Beili Beili rose more than 3%, the good future rose more than 2%, Baidu and Alibaba rose about 0.8%, while Poundland fell more than 2%, Tencent ADR fell nearly 0.2%.
In Europe, the Euro Stoxx 600 index closed higher for the first time in the last five trading days, off the low hit on Monday since May 20. The sectors, up more than 1.5% of mining stocks in the sector of basic resources led, up nearly 1.4% of financial services and more than 1.2% of banks followed. Individual stocks, UBS rose more than 5%, its second-quarter net profit jumped 63%, supported by wealth management business. Major European stock indexes ended a three-day losing streak on Tuesday, but rose less than 1%, only to recover a small part of Monday’s losses, which fell at least 2% on Monday.
The 10-year U.S. bond yield turned up mid-day to regain 1.20%, coming off a five-month low
U.S. 10-year benchmark Treasury yields turned down in the European stock market, U.S. stocks once fell to 1.12% before the bell, refreshing the low since February 11, after Monday hit a new intraday low of more than five months, down more than 6 basis points during the day, U.S. stocks turned up after the opening bell, U.S. stocks erased all declines in the morning to turn up, back on 1.20%, once rose above 1.22% at the end of the morning session to refresh the daily high, up more than 3 basis points during the day .
The same European shares turned down the 2-year U.S. bond yields failed to rebound, the U.S. shares had fallen to 0.19% below the beginning of the session to refresh the daily low, down more than 2 basis points during the day.
By the time U.S. stocks closed, the 10-year U.S. bond yield was about 1.22%, up about 3 basis points during the day; the 2-year U.S. bond yield was above 0.20%, down more than 1 basis point during the day.
European government bonds Tuesday prices mostly continued to rise, up less than Monday, the British government bond intraday prices rebounded, yields turned up. British 10-year benchmark Treasury yield rose 0.4 basis points intra-day to 0.564%, the U.S. stocks had fallen to 0.497% before the day, for two consecutive days since February 12 intraday lows; the same period, German government bond earnings fell 2.5 basis points intra-day to -0.41%, the U.S. stocks once fell to -0.439% before the day, also continued to hit a new intraday low since February 12.
The dollar index retreated after hitting a new high in more than three months. Bitcoin fell below $30,000 for the first time in four weeks
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies of the U.S. dollar, turned up again shortly after European stocks turned down mid-day and has continued to move upward since then, with U.S. stocks rising to 93.17 in early trading, a new intraday high since April 1, up 0.3% during the day, before gradually giving back most of its gains.
By Tuesday’s U.S. stock market close, the dollar index was at close to 92.95, up less than 0.1% during the day; the Bloomberg Dollar Spot Index was almost flat at Monday’s closing level.
Bitcoin (BTC) fell below $30,000 in the Asian trading session, losing the $30,000 mark intraday for the first time since June 22, and fell below $29,400 in early U.S. trading, with some platforms falling through $29,300, setting a new four-week intraday low, down more than $1,000 from the intraday high in early Asian trading, a percentage drop of more than 5%, and still below $30,000 at the close of U.S. trading, with a recent down more than 2% in the last 24 hours.
Ether (ETH), the second largest cryptocurrency by market capitalization after Bitcoin, had fallen below $1,720 in both Asian and European markets, hitting a new intraday low for the second day in a row since June 26, falling more than 6% from its intraday high in early Asian trading, and closing below $1,800 in U.S. stocks, down more than 1% in 24 hours.
CoinMarketCap data shows that mainstream cryptocurrencies continued to fall on Tuesday, with the fourth and seventh largest cryptocurrencies by market capitalization, coinancoin (BNB) and ripple (XRP), down more than 4% in the last 24 hours, the 13th largest cryptocurrency, litecoin (LTC), down nearly 4%, the fifth largest cryptocurrency, Cardano (ADA), down more than 3%, and the 12th largest cryptocurrency Bitcoin Cash (BCH) is down 3% and Dogecoin (DOGE), the 8th largest cryptocurrency, is down more than 1%.
Crude oil rises more than 1% off near two-month low, natural gas hits another two-and-a-half-year high
International crude oil futures rebounded on Tuesday, but have yet to recover even half of Monday’s losses.
U.S. WTI August crude oil futures closed up 1.50% at $67.42/barrel, off the closing low hit on Monday since May 28 this year; Brent September crude oil futures closed up 1.06% at $69.35/barrel, a new closing low since May 24 this year on Monday, and U.S. oil are the largest closing gain since last Tuesday, July 13. U.S. oil and BOP closed down 7.5% and 6.75%, respectively, on Monday, hitting the biggest closing losses since Sept. 8 last year and March 18 this year.
U.S. gasoline and natural gas futures both rose. nymex August gasoline futures closed up 1% at $2.13/gallon, after falling nearly 6.4% on Monday to a new low since May 21. nymex August natural gas futures closed up 2.6% to close at nearly $3.88 per million British thermal units, up three days in a row and continuing to set new closing highs since December 2018.
LONDON Copper shakes off one-month trough, LONDON Tin nears record high Gold ends two-day losing streak, silver hits another new low over March
London base metals futures rebounded on Tuesday except for Lunzinc, which fell for a second straight day. Copper and lead ended a two-day losing streak, with copper rebounding to $9,300, leaving the June 21 low set on Monday and erasing half of Monday’s losses, and lead coming off a low for the month. Aluminum ended a four-day losing streak and broke out of a near-month low. Nickel and tin rebounded, with nickel coming off a more than one-week low and tin approaching a new record high set on Friday.
Gold futures in New York approached $1,826 at a new daily high early in the U.S. session on Tuesday, up more than 0.9% during the day, but turned lower in early trading and eventually barely closed higher, with COMEX August gold futures closing up 0.1% at $1,811.40 per ounce, off a week-long low hit on Monday and ending a two-day losing streak.
New York silver and platinum futures fell for three days in a row, with silver futures closing down 0.6% to close slightly below $25 per ounce, the second consecutive day of new lows in the main contract since April 12; platinum futures closed down 0.6%, a new low in the main contract since June 21. Palladium ended a five-day losing streak, closing up 1.8%, off the low hit on Monday since June 22.