The market expects the Fed meeting this week will maintain a monetary easing stance, Apple and many other companies announced earnings will show solid first quarter results, U.S. stocks opened higher. The Nasdaq hit a record high supported by blue-chip technology stocks led by Amazon, and the S&P was supported by most sectors such as energy, also hitting a record high, while the Dow turned lower in the session dragged by some constituents such as Procter & Gamble.
The dollar index hovered at a low since early March as cryptocurrencies such as bitcoin rallied en masse. The U.S. $60 billion 2-year Treasury tender sale was disappointing, but the $61 billion 5-year Treasury tender sale was better than expected, and the threat of a repeat of the February “U.S. debt massacre” abated. The secondary market reaction to U.S. debt was muted, and the 10-year U.S. bond yield continued to rise.
Chinese demand was strong, with domestic rebar and iron ore both hitting record highs. The global economic recovery and the Biden administration’s plans for major infrastructure and significant carbon emissions reductions pushed a variety of industrial metals higher, with both domestic and foreign futures for copper, the bellwether of the economy, hitting new highs since August 2011.
In other commodities, gold and other precious metals rose, with palladium reaching a new high after less than a week; crude oil futures, which had been rising for days, fell slightly as investors worried that an epidemic in India could affect OPEC+’s oil production decisions. On Monday, it was reported that the OPEC+ Joint Technical Committee believes that the surge in Indian cases could cause the demand recovery to get off track.
In European markets, European stocks rebounded, with the pan-European stock index hitting a one-week high approaching record highs, led by the banking sector supported by climbing European debt yields, and mining stocks benefiting from higher copper and other metals rose, but VW, which is reportedly expected to be more affected by chip shortages in the second quarter, bucked the market.
Small-cap stock indexes outperformed the broader market to record highs Energy sector led the S&P Daily consumer goods bucked the market decline Amazon pulled up mid-day to lead the leading technology stocks
The three major U.S. stock indexes opened collectively higher, but performance was mixed during the session. The Dow Jones Industrial Average was the worst performer, opening lower, up slightly more than 100 points at the beginning of the session when the new daily high, and turned lower at midday, down slightly more than 100 points when the new daily low. S&P 500 and Nasdaq composite index to maintain intraday gains, the S&P for the second consecutive trading day to set a new intraday record high, the maximum intraday gain of more than 0.3%, the Nasdaq midday for the second consecutive day to set a new intraday high since February 16, up nearly 1% at one point during the day.
By the close of trading, the three major indices were mixed, with the S&P and the Nasdaq rising for two consecutive days and the Dow falling back. The S&P closed up 0.18% at 4187.62 points, and the Nasdaq closed up 0.87% at 14138.78 points, both closing at record highs. The Dow closed down 61.92 points, or 0.18%, at 33,981.57 points, giving back some of Friday’s gains.
Small-cap stocks continued to outperform the broader market, with value stocks dominating the small-cap index Russell 2000 expanding to more than 1% at midday, closing up 1.15% to a new closing high. The technology-heavy Nasdaq 100 index closed up 0.61%.
Dow components, Procter & Gamble fell 2%, Coca-Cola, Wal-Mart, Home Depot, United Health, 3M, McDonald’s fell more than 1%; American Express rose more than 4%, Boeing, Goldman Sachs rose more than 1%.
S&P 500 of the 11 major sectors, only four closed on Monday, down more than 1% of the essential consumer goods led the decline, utilities fell more than 0.5%, industrial and health care fell about 0.3%. Rising sectors, up more than 0.6% of energy and non-essential consumer goods led, up nearly 0.6% of information technology rose to the top, other sectors rose between 0.2% and 0.33%.
Leading technology stocks collectively closed up. FAANMG six major technology stocks, Amazon’s best performance, the lunchtime news of the stock split quickly pulled up, expanding to more than 2%, closing up about 2%; Nifty rose more than 0.9%, Facebook rose more than 0.6%, Google parent company Alphabet rose more than 0.4%, Apple rose 0.3%, Microsoft rose 0.15%. Tesla closed up more than 1%, after the bell announced weaker-than-expected revenue for the quarter, after the bell quickly turned down, down 3% at one point. Commentary said Tesla’s earnings in the quarter came mainly from the sale of regulatory credits, which would have prevented it from recording six consecutive quarters of profitability without such revenue streams.
Among other technology stocks, Snap, which rose more than 7% on Friday, fell more than 2%. Chip stocks in general, the semiconductor sector ETF rose 1.6%; Western Digital rose about 5%, AMD rose more than 3%.
Some popular Chinese stocks that led the market for days last week lost ground, with Chinese ETFs CQQQ and KWEB down more than 0.7% and nearly 0.3%, respectively. Among the stocks, the ADR of Meituan, which is under investigation by Chinese regulators for alleged monopolistic practices such as “second-choice”, fell nearly 6%, Zhihu fell more than 5.8%, Baidu dropped 2%, Tencent ADR fell more than 1.8%, Xiaopeng Auto fell 0.9% and Jingdong fell nearly 0.8%. While Heilongjiang rose 15%, Fudao Securities and Tiger Securities rose about 4%. Azera Motors rose more than 3%, Tencent Music, Pondo rose more than 2%, Ideal Auto rose 1%, Alibaba rose nearly 0.3%.
In Europe, pan-European stock indexes hit a one-week high, approaching record highs. Among the sectors, banks and mining stocks in the sector based on resources rose nearly 2% to lead the gains, the travel sector rose more than 1% to close at a new high. Among individual stocks, VW bucked the market by more than 2%.
Lun copper rose above $9,700 two days in a row to a new high of more than nine years Lun tin less than a week again to a new high of more than nine years
Most London base metal futures continued to rise on Monday. Lun copper, Lun aluminum, Lun nickel rose for two days in a row, Lun copper rose above $ 9,700, continue to set a new high of more than nine years, intraday had risen to $ 9,765. Last week’s nearly three-year high of the Lun aluminum hit a full three-year high. Lead rose for three days in a row, hitting a new high of more than seven weeks. Zinc rose four days in a row to a new two-year high. Lun tin ended a two-day losing streak and closed above $27,000, hitting a new high in more than nine years after last Wednesday.
New York copper futures and domestic copper futures also set new highs in August 2011. comex May copper futures had risen to $4.4 during the day, Shanghai copper broke 71,000 yuan per ton during the day, up 2.5%, closing up more than 2%.
U.S. grain futures hit an eight-year high reigniting food inflation concerns
This Monday’s session, wheat, corn and soybeans, which affect the main grain of the U.S. food futures prices are hitting a new high of about eight years, the end food faces the threat of price increases, food inflation worries rise again. Some analysts fear that the U.S. agricultural market has formed a speculative bubble.
CBOT wheat futures rose to $7.46/bushel intraday, a new high since February 2013, up 4.7% during the day. Corn once rose to $6.575 a bushel, a new high since May 20, 2013, and soybeans rose to $15.44 a bushel intraday, a new high since June 5, 2013.
Commentary points out that bad weather in many agricultural-growing countries is the main driver of the recent uptick in agricultural prices. Drought in the U.S., Canada and France is harming wheat planting in those countries, and drought is also detrimental to corn planting in Brazil. Rainfall is not conducive to soybean harvesting in Argentina. Market participants also mentioned rumors that China is considering importing an additional 1 million tons of corn to meet the needs of the domestic pig industry.
Dollar index hits another eight-week low Bitcoin once rose over $5,000 to regain $54,000 Ether rose over 10% during the day
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies, had fallen below 90.69 during the Asian session, hitting a new intraday low for the third consecutive day since the beginning of March, down nearly 0.2% during the day, and has since rebounded, with European stocks turning up during the session and U.S. stocks approaching 91.00 in the early morning session at a new daily high, up nearly 0.14% during the day, but turning down again at midday.
By Monday’s U.S. stock market close, the dollar index was below 90.83, down nearly 0.04% on the day; the Bloomberg Dollar Spot Index was almost unchanged from Friday’s level.
CoinMarketCap data shows that mainstream cryptocurrencies that fell over the weekend rebounded collectively on Monday, with Ripple (XRP) the best performer with a cumulative gain of more than 22% in the last 24 hours by the close of U.S. stocks, and Dogcoin (DOGE) up more than 5%, but still down more than 32% cumulatively in the last seven days.
Bitcoin (BTC) had risen above $54,400 at midday in the U.S. stock market, up more than $5,500 from the intra-day low in early Asian trading, a percentage gain of more than 11%, the U.S. stock market closed at $53,900 above, close to $54,000, the recent 24-hour cumulative gain of more than 8%.
Market value after bitcoin, the second largest cryptocurrency ethereum (ETH) in the U.S. stock market at noon had risen above $ 2530, up more than 10% from the low of the day in early Asian trading, the U.S. stock market closed at about $ 2490, up more than 8% in 24 hours.
Gold and silver end two-game losing streak, palladium hits another record high in less than a week, crude oil ends two-game winning streak
New York gold and silver futures ended a two-day losing streak, COMEX June gold futures closed up 0.1% at $1780.10/oz, erasing half of Friday’s losses. COMEX May silver futures closed up 0.51% at $26.209/oz, erasing Friday’s losses.
Platinum and palladium rose for the second day in a row, with platinum futures closing up nearly 1%. NYMEX June palladium futures closed up 1.83% to close at $2,909.30/oz, a new all-time closing high set last Wednesday.
International crude oil futures retreated after two consecutive gains.
WTI June crude oil futures closed down $0.23, or 0.37%, at $61.91/barrel; Brent June crude oil futures closed down $0.46, or 0.69%, at $65.65/barrel, with the U.S. oil and the oil falling about 1.60% and 1.00%, respectively, last week.
European bonds fell together 10-year U.S. bond yields continue to rise once tested at 1.60%
European government bond prices fell across the board on Monday, with yields rising across the board. British 10-year benchmark bond yields rose 1.3 basis points to 0.756% during the day; German bond yields rose 0.4 basis points to -0.253% during the same period.
U.S. 10-year benchmark Treasury yields in the European stock market, U.S. stocks before the market had been tested 1.60% to refresh the intraday high since last Tuesday, an intra-day rise of about 4 basis points, and then fell back, U.S. stocks in early trading back to 1.57% below, once retracted all the gains to the U.S. stocks closed at 1.57%, an intra-day rise of 1 basis point.
U.S. bond yields of all maturities rose slightly on Monday. By the end of New York, 10-year and 30-year U.S. bond yields rose by about 0.9 and 0.6 basis points, respectively, and the 5-year and 2-year yields rose by 1.3 and 1 basis point, respectively.
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