Following the March U.S. non-farm payrolls growth data, the ISM services index in March also far exceeded expectations and hit a new record high. Unexpectedly strong economic data fueled market confidence in the economic recovery, U.S. stocks continued to move upward, with the S&P climbing to new highs, but small-cap stocks rose significantly weaker and energy stocks fell against the market due to the impact of crude oil.
India and Europe epidemic backlash to market fears that some governments restart the embargo, hitting demand, coupled with the Iranian nuclear deal is expected to restart, Iranian oil exports fear a big increase in international crude oil futures fell hard on Monday. Dragged by crude oil, U.S. Treasury yields retracted gains to decline during the day.
Thanks in part to a retreat in the dollar index, gold continued to rise, and cryptocurrencies such as bitcoin rose generally. Some platforms tracked data showing that the overall market capitalization of cryptocurrencies surpassed $2 trillion for the first time in history. European stock and bond and metal futures remained closed on Monday due to the Easter holiday.
Three major U.S. stock indexes rose more than 1% for the day Small-cap stocks underperformed the broader market Energy sector bucked the market alone Some Archegos burst victim stocks fell
The three major U.S. stock indexes collectively opened higher, with early gains all expanding to more than 1%. The S&P 500 hit a new intraday high for the third day in a row, following the last trading day last Thursday for the first time on the 4,000 points, Monday all day remained above 4,000 points, once up nearly 1.6% at midday, the Nasdaq Composite Index rose nearly 1.8% at midday when it set a new daily high. The Dow Jones Industrial Average, which opened nearly 70 points higher, rose above 33,600 points at midday to set a new intraday high, up more than 460 points during the day, up 1.4% in percentage points.
Eventually, the three major indices closed up collectively for the second consecutive trading day, and for two consecutive days were up more than 1%, the S&P and the Nasdaq rose for three consecutive days. S&P 500 closed up 1.44% at 4077.91 points, closing at a record high for the second consecutive day. The Nasdaq closed up 1.67% at 13705.59 points, a new closing high since February 19, closing up more than 1% for three consecutive days. The Dow closed up 373.98 points, or 1.13%, at 33527.19 points, closing above 33,500 points for the first time in its history.
The small-cap stocks are significantly worse than the broader market, value stocks dominated by the small-cap index Russell 2000 opened higher and lower, had risen nearly 1.2% at the beginning of the session, once in the afternoon session almost retracted all intra-day gains, closing up 0.45%. Technology-heavy Nasdaq 100 index closed up 2.02%, outperforming the three major stock indexes.
Dow components, Walgreens and Intel are up more than 3% to lead, while Goldman Sachs and the only energy stocks Chevron are down more than 1%. The S&P 500’s 11 major sectors, in addition to falling more than 2% of energy are up, telecommunications services, non-essential consumer goods and information technology are up more than 2%.
Suffering from the heavy drop in international oil prices, oil and gas stocks fell in general, Occidental Petroleum Corporation, Caron Petroleum, APA, Murphy Oil are down more than 6%. Most photovoltaic stocks closed lower, with First Solar down more than 3%. PRIM and MLM rose more than 3%, leading the infrastructure stocks.
Leading technology stocks closed up collectively, FAANMG six major technology stocks, Google parent company Alphabet rose more than 4% to lead the U.S. Supreme Court on Monday overturned the original ruling, ruling that Google used to build the Java API for Android did not infringe, after Oracle accused Google of demanding as much as $9 billion; Facebook rose more than 3%, Apple, Microsoft, Amazon rose more than 2%, Nifty rose more than 0.2%. Nifty rose more than 0.2%. Tesla had risen 7% in early trading, closing up more than 4%, last Friday Tesla announced a quarter of deliveries well above market expectations, brokerage Wedbush has since upgraded Tesla’s stock rating for the first time to outperform.
Other technology stocks, the end of the media news that Google plans to stop using Oracle’s financial software and will switch to SAP’s products in the coming weeks, SAP shares pulled up in late trading, closing up more than 4%. The “gaming world Lego”, online gaming platform Roblox closed up over 5%, having risen over 8% in early trading, with Goldman Sachs, which first covered the division’s stock, giving it a buy rating.
Cruise stocks were up, with Norwegian Cruise up over 7%, Carnival Cruise up over 4% and Royal Caribbean Cruise up over 2%. The U.S. Centers for Disease Control and Prevention (CDC) issued new cruise industry guidelines on Friday, a step closer to resuming cruise operations in U.S. ports. Norwegian Cruise Lines applied to the U.S. authorities on Monday to resume berthing in U.S. ports as of July 4.
Some stocks related to the Archegos blowout sank. Media said Credit Suisse’s Archegos-related positions are not yet closed out, and some analysts said it remains unclear that the banks holding Archegos exposure are appropriate to complete the sell-off; Credit Suisse offered block stock trades in ViacomCBS, Vipshop and FarFetch. After hours, ViacomCBS, which closed down nearly 4%, fell more than 3%, FarFetch, which closed down more than 6%, fell more than 3%, and Vipshop, which closed down more than 1%, fell more than 4% at one point.
Among other volatile stocks, retail holdout GameStop (GME) once fell more than 13.5% in early trading and closed down more than 2% after the division announced earlier Monday that it may issue up to 35 million additional shares to accelerate its transition to an e-commerce business, implying a possible sale of up to $1 billion worth of stock. Another retail holdout, theater giant AMC, had risen more than 20 percent during the day, closing up more than 13 percent, and the division was upgraded to buy by brokerage firm B. Riley Securities.
Chinese stocks were mixed, with Aiki and Baidu up about 1 percent, while Toutiao fell more than 6 percent, followed by Who’s Who down more than 10 percent and new stock Doodle Smart down more than 13 percent. Although Tesla rose but three Chinese new energy car stocks fell, Xiaopeng car fell more than 2%, ideal car fell more than 1%, Azera car fell nearly 0.9%.
Crude oil hit the biggest drop in nearly two weeks U.S. oil hit a new low of nearly two weeks, down more than 6% during the day
International crude oil futures opened lower on Monday. Brent crude oil fell below $61.30 to set a new daily low during the U.S. session, falling more than 5.5% during the day. U.S. WTI crude oil fell even more, with U.S. stocks once falling below $57.70 at midday, down even more than 6.2% intraday.
In the end, WTI May crude oil futures closed down $2.80, or 4.55%, at $58.65/barrel, a new low since March 23; Brent June crude oil futures closed down $2.71, or 4.18%, at $62.15/barrel, a new low since March 25, both the biggest closing losses since March 23.
U.S. bond yields turn lower intraday
U.S. Treasury prices rebounded and yields retreated during the U.S. equity session on Monday.
U.S. 10-year benchmark Treasury yields rose above 1.74% to a new daily high before the U.S. stock market on Monday, with the largest intraday gain of more than 2 basis points. U.S. stocks retraced all gains and turned lower in early trading, dropping to below 1.71% at midday, approaching an intraday low of around 1.70% in early Asian trading.
By the time U.S. stocks closed, the 10-year U.S. bond yield was about 1.71%, down 1 basis point for the day; the 30-year U.S. bond yield was reported at 2.35%, down less than 1 basis point for the day; the 2-year U.S. bond yield fell 2 basis points to 0.17% for the day.
Last Friday after the release of non-farm payrolls data, U.S. Treasury yields generally upward, the 10-year U.S. bond yields back on 1.70%, once rose above 1.72%, up more than 5 basis points during the day; 2-year U.S. bond yields once rose to 0.19%, a new high since June last year, up about 3 basis points; 5-year U.S. bond yields rose above 0.97%, a new high since February last year, up nearly 8 basis points during the day basis points.
The dollar index hit a new low of more than a week Bitcoin regained $59,000 Ether approached a record high The total market capitalization of cryptocurrencies exceeded $2 trillion for the first time compared to Apple
The ICE U.S. Dollar Index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, had turned up in the Asian midday and European trading sessions on Monday, rising more than 93.10 at a new daily high, up nearly 0.1% on the day, before quickly turning lower as U.S. stocks fell below 92.60 during the session to set a new daily low, down more than 0.5% on the day, back to levels seen last Wednesday, March 24.
By Monday’s close, the dollar index was below 92.60, down more than 0.46% on the day; the Bloomberg Dollar Spot Index fell 0.3%, returning to a two-week trough and testing the 200-day average.
Mainstream cryptocurrencies rose in tandem on Monday. Bitcoin (BTC), which has been retreating since Friday after rising above $60,000, rebounded on Monday, rising above $59,200 in early U.S. trading to a new daily high, up more than $2,500 from its intraday low in the European trading session, and closing above $59,100 in the U.S. stock market.
Ether (ETH), the second-largest cryptocurrency by market capitalization after Bitcoin, rose above $2,100 in U.S. trading at midday, approaching the all-time high set last Friday after breaking above that mark, and closed above $2,100.
CoinGecko data showed that the total global cryptocurrency market capitalization surpassed the $2 trillion mark for the first time in history, approaching that of Apple, the highest market capitalization company in the United States. This comes just three months after the total cryptocurrency market cap first surpassed $1 trillion in January 7 of this year, with the market price of bitcoin at around $33,000 three months ago.
Gold closes slightly higher for the third straight session at a one-week high
New York gold futures rose for a third straight session. COMEX June gold futures closed up $0.40, or 0.02%, at $1,728.80 per ounce, a new closing high since March 26, but not as much as in the previous two sessions. Futures gold closed up 1.8% and 0.75% last Wednesday and Thursday, respectively, last Wednesday’s largest closing gain since March 9. Comments suggest that gold gains on Monday were limited by higher U.S. stocks.
Other precious metals were mixed. New York silver futures ended a two-day winning streak, closing down 0.67% on Monday, giving back nearly half of last Thursday’s gains. Platinum edged up nearly 0.1%, up three days in a row.
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