US stocks struggle to build on overnight strong gains
|Major US equity indices built on overnight strong up-move and opened with modest gains on Tuesday, albeit quickly drifted into negative territory.
Trade tensions between the US and China showed further signs of easing after the Chinese government announced to cut import duties on passenger cars to 15% from the current 25% effective from July 1. Meanwhile, both the countries are also reportedly nearing an agreement to settle the controversy over Chinese telecom giant ZTE.
Adding to this, some renewed buying around tech-stocks lifted the overall market sentiment and was seen supporting a mildly positive sentiment during the opening hour of trade.
Bulls, however, lacked strong conviction amid a continuous upsurge in crude oil prices, which now seemed to fuel inflationary concerns. This coupled with elevated US Treasury bond yields, amid expectations over a faster Fed monetary policy tightening cycle, might further contribute towards capping any additional gains.
At the time of writing this report, the Dow Jones Industrial Average was down around 35-points and retreated back below the 25K psychologically important level. Meanwhile, the broader S&P 500 Index and tech-heavy Nasdaq Composite Index both held just above previous session’s closing levels, around 2,735 and 7,396 respectively.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.