In the U.S. Treasury Secretary Yellen’s speech triggered Tuesday’s intraday plunge in U.S. stocks, Yellen and the White House emergency “fire” to clarify that there is no hint of a rate hike, including the Fed’s second-in-command, a number of senior Fed officials have spoken out intensively to the prospects of recent rate hikes and QE tapering to throw cold water. The newly released economic data is still positive, the U.S. ISM services index in April unexpectedly fell instead of rising, but still at the second highest level in history, the ADP private sector job creation in April hit a seven-month high, coupled with General Motors, T-Mobile, Lyft, the first quarter results of these companies better than market expectations, U.S. stocks resumed gains on Wednesday, but the Nasdaq fell in most leading technology stocks at lunchtime pressure The Nasdaq turned lower at midday under pressure from most leading technology stocks.
Federal Reserve officials downplayed the prospect of a rate hike, the secondary market U.S. benchmark 10-year Treasury yields turned down from a suspension of gains, while the market’s 5-year U.S. inflation expectations indicator remained at a new high since the financial crisis.
Yellen’s rate hike alert was lifted as the dollar set a new two-week high and gold rallied, but all other precious metals closed lower, with palladium, which recently hit a new intraday high, not spared.
Some industrial metals such as copper hit another record high and U.S. cork futures continued to set new record highs, highlighting rising inflationary pressures. The U.S. Department of Energy reported a larger-than-expected decline in domestic crude inventories of almost 8 million barrels last week, almost 3.5 times the drop expected by analysts, but U.S. crude futures still closed slightly lower and Brent crude closed slightly higher. Commentary said that the market is weighing, the rest of the world’s new crown cases are still high situation demand prospects.
In European markets, mining stocks and oil and gas stocks led a big rally in European stocks, inspired by higher commodities such as copper, and European government bond prices then retreated and yields rebounded.
Dow three consecutive positive index, the Nasdaq hit another one-month low seven major technology stocks only Apple and Google rose energy sector led the S&P
The three major U.S. stock indexes collectively opened higher, the Nasdaq Composite Index, which opened higher and lower, performed relatively worst, rising nearly 0.9% at the beginning of the session to a new daily high, turning lower about an hour before the close and falling nearly 0.6% at the end of the session to a new daily low. The S&P 500 and the Dow Jones Industrial Average both turned down briefly in early trading. The S&P was up more than 0.55% at its intraday high, and gave back most of its gains in late trading. The Dow hit an intraday record high at lunchtime when it rose above 34,330 points, the largest intra-day gain of nearly 99 points.
Ultimately, the three major indices closed continued to be mixed. The Dow closed up 97.31 points, or 0.29%, at 34230.34 points, a record closing high, closing up for the third consecutive day. The S&P closed up 0.07% at 4167.59 points, out of the closing lows set on Tuesday since April 22. The Nasdaq closed down 0.37% at 13,582.42, down four days in a row and hitting a new low for the second straight day since April 1, but the decline eased significantly from Wednesday’s 1.88%, the biggest drop since March 24.
Value stocks dominated the small-cap index Russell 2000 although opened higher, but more than once during the session turned down, and finally closed down 0.31%, technology stocks for the heavy Nasdaq 100 index closed down 0.3%, both running the Dow and S&P.
Dow components, Dow Chemical, Chevron, Goldman Sachs, Merck rose more than 2%, JPMorgan Chase, American Express, 3M rose more than 1%; while Boeing fell more than 2%, Disney, Visa fell more than 1%. The S&P 500’s 11 major sectors closed down 6 on Wednesday, 5 closed up. Up in the sector, up more than 3% of energy far ahead of other sectors, followed by more than 1% of materials and more than 0.9% of finance, industrial and health care rose more than 0.1% and 0.2%, respectively. Among the declining sectors, utilities and real estate were down more than 1%, while other sectors fell between 0.1% and 0.4%.
Most of the leading technology stocks closed lower, FAANMG six major technology stocks, only up 0.2% Apple and up more than 0.3% Google parent company Alphabet closed higher, Facebook, Nifty, Amazon are down more than 1%, Microsoft fell more than 0.5%. Tesla fell nearly 0.4%.
Among the more volatile stocks that recently reported earnings, General Motors and T-Mobile opened higher, both closing up more than 4%; Lyft turned lower at the beginning of the session, closing down more than 6%.
Lyft’s online car business rival Uber closed down more than 3%. After the bell Uber announced a quarterly net loss of nearly 90% compared to the fourth quarter of last year, but that is from the sale of the self-driving business, the quarter’s revenue was lower than expected, after the bell Uber first up and then down, first had risen more than 2%, and then once fell more than 4%.
In Europe, the pan-European stock index, which hit its biggest decline since late February on Tuesday, closed up 1.82%, and the German stock index, which hit its biggest decline in five months on Tuesday, both hit their biggest closing gains since March 8. Among the sectors, mining and oil and gas stocks in the sector are up more than 3% to lead the gains.
10-year U.S. bond yields turned lower during the session, but the market 5-year inflation expectations still hit a 13-year high
U.S. 10-year benchmark Treasury yields in the U.S. stocks before the market had tested 1.62% to set a new daily high, up about 3 basis points during the day, but U.S. stocks fell to 1.59% below midday, giving back all the gains turned down, to the U.S. stocks closed at about 1.57%, down 2 basis points during the day.
By the end of the day in New York, U.S. bond yields of all maturities generally fell, the yield on the 10-year U.S. bond fell more than 2.6 basis points during the day, the 5-year U.S. bond also fell more than 2 basis points, the 30-year fell 1.9 basis points, the 2-year fell nearly 0.8 basis points.
During Wednesday’s midday trading session, the 5-year flat inflation rate, as measured by the spread between the 5-year Treasury bond and the inflation-protected Treasury bond (TIPS) during the same period, exceeded 2.70%, a new high since July 2008.
Along with the rebound in European stocks, European government bond prices fell back after days of gains and yields rebounded. British 10-year benchmark government bond yields rose 2 basis points to 0.82% during the day; German government bond yields rose 1 basis point to -0.23% during the same period.
The dollar index hit a new intraday high of more than two weeks, with bitcoin approaching $58,000 and ethereum once up 9%.
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies, had risen above 91.40 in early European trading, refreshing intraday highs since April 19, up more than 0.16% during the day, and both European and U.S. stocks had turned lower during the day.
By Wednesday’s U.S. stock market close, the dollar index was slightly below 91.27, down 0.02% intraday, and the Bloomberg Dollar Spot Index was almost unchanged from Tuesday’s level.
The offshore yuan (CNH) fell against the dollar for the second day in a row to 6.4876 yuan at 5:59 p.m. GMT on the 6th, hitting new lows in the late New York session and intraday since April 23 for the second day in a row, down 37 points from Tuesday’s late New York session, and trading overall in the 6.4782-6.4930 yuan range during the session.
CoinMarketCap data shows that mainstream cryptocurrencies rose collectively on Wednesday, and by the close of the U.S. stock market, Bitcoin Cash (BCH), which ranks ninth in market capitalization, accumulated more than 36% in the last 24 hours, while Litecoin (LTC), which ranks 10th, and Ripple (XRP), which ranks fifth, rose at least 12%, and Dogcoin (DOGE), which ranks fourth, rose more than 6%.
Bitcoin (BTC) in the U.S. stock market at lunchtime once approaching $58,000 to refresh the daily high, up more than $5,000 from the intra-day low in early Asian trading, a percentage increase of more than 9%, the U.S. stock market closed at $57,000 above, the last 24 hours cumulative increase of more than 4%.
Market value after bitcoin, the second largest cryptocurrency ethereum (ETH) in the U.S. stock market at noon had tested 3490 U.S. dollars to refresh the daily high, up nearly 9% from the intraday low, and Tuesday’s intraday rise through 3530 U.S. dollars to set a new record high of about 1%, the U.S. stock market closed close to 3480 U.S. dollars, up more than 2% in 24 hours.
London-copper exceeds $10,000 again, still close to record highs despite closing lower, London-tin three consecutive positive record highs
London base metals futures were mixed on Wednesday.
LME copper futures had risen to $10.4 million in early trading, refreshing the 10-year intraday high set by last Thursday’s breakthrough of the $10,000 mark, approaching the record high set in February 2011 when it rose to $10.19 million, but has since turned down, finally closing down $16 at $9,950 per ton, still close to the 10-year high.
Lunzinc ended a two-day gain streak and fell to a nearly three-year high. LunLead ended an eight-day streak of gains, falling off a more than two-year high. LON Tin rose for three days in a row and closed near a record high of $29,700,000. Lunar aluminum rose for two days in a row, two days in a row to a new three-year high. Lunnickel hit a three-month high.
Although the Lun copper approaching 10,000 U.S. dollars, but seventy percent of export earnings from copper, Zambia did not benefit, its local currency kwacha exchange rate plummeted against the dollar, at an all-time low.
Cork futures have reached new highs, rising above $1,500 for the first time
U.S. cork futures prices have continued to set new highs in recent days, the end of April had more than once intraday stop, up more than 3% again this Monday, Wednesday for the first time in history exceeded the $ 1,500 mark, once soared to a record high of $ 1530, up more than 4% intra-day, the cumulative rise of more than 150% so far this year.
Softwood futures have tripled in the past year due to an unexpected surge in home construction and renovations that caught sawmills off guard during the epidemic. As demand for home construction was strong, builders scrambled to get the lumber they needed, while lumber producers struggled to add to their inventories. On the other hand, labor shortages such as truck drivers and construction companies exacerbated the situation.
As mentioned in a Wall Street Journal article last month, construction lumber prices have risen 200% in nine months since last June. The lumber supply chain is also in trouble, with the market witnessing the “reverse” sale of lumber from storage yards to distributors. Popular short-form video platforms are showing videos with the buzzword “lumber bubble”.
This week the price of lumber is the first time in history to rise above $ 1600, close to the price of gold, if you keep up the trend, is expected to have been the first time since 2004 market price than gold.
Precious metals only gold rose, palladium fell off record highs to lose $3,000
New York gold futures rebounded, COMEX June gold futures closed up 0.5% at $1784.30 per ounce, erasing some of Tuesday’s losses. Before closing down 0.88% on Tuesday, gold futures closed above $1,790 this Monday to hit a new high since April 21.
Other precious metals are down, New York silver futures fell for two days, platinum ended a three-day streak of gains, palladium closed lower for two days.
NYMEX June palladium futures closed down 0.16% at $2972.80 per ounce, having risen to $3,010 during the day, approaching the all-time intraday high of $3,019 set in Tuesday’s session when it rose above the $3,000 mark for the first time in its history.
U.S. oil falls off seven-week highs, british oil triple gain hits more than seven-week high Bloomberg Commodity Index rises for record 16th straight day
International crude oil futures were mixed on Wednesday, with Brent crude up for three straight days and U.S. WTI crude halting a two-day streak of gains.
WTI June crude oil futures closed down $0.06, or 0.09%, at $65.63/barrel, down from the closing high for the main contract set on Tuesday since March 11; Brent July crude oil futures closed up $0.08, or 0.12%, at $68.96/barrel, a new high for the main contract closing since March 12, but up significantly less than Tuesday’s 1.95% , Tuesday’s cloth oil and up 1.86% U.S. oil both hit the largest closing gain since April 14.
Although the U.S. oil closed lower, but the overall commodities remain on the upside. As of Wednesday, the Bloomberg Commodity Index rose for the 16th consecutive session, the longest streak of up days, and is now at its highest level since July 2015.
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