Wall Street Close: Mixed performance as downbeat Treasury yields save Nasdaq
|- US equities trim initial losses but stay pressured after a long weekend.
- ISM Services PMI eased more than expected in June.
- Energy stocks bear the burden of oil’s biggest drop in three months.
- DIDI slumps 20%, Amazon adds 4.7% on specific news.
Shares on the US bourses couldn’t get a warm welcome following an extended weekend as risk-aversion dominates the market. Even so, a slump in the US Treasury yields helped the tech-heavy Nasdaq to print mild gains.
Read: Forex Today: Risk aversion spurred demand for the greenback
The risk-off mood could be linked to the receding economic optimism concerning the US after the ISM Services PMI dropped below 63.5 forecast to 60.1 in June, versus 64.0 prior. Also weighing on the market sentiment were the fears of the coronavirus (COVID-19) variant. The strain called Epsilon, traced from California, gained major attention due to its resistance to the vaccines. Additionally magnifying the covid concerns were the chatters backing the third wave in the next one month or a two.
That said, Dow Jones Industrial Average (DJI) drops 0.60%, or 208.98 points, to 34,577.37 whereas S&P 500 marks an 8.80 point of a daily loss, or 0.20%, to end Tuesday’s North American session around 4,343. On the contrary, Nasdaq adds 0.17% or 24.3 points to close at 14,663.60.
It’s worth noting that oil’s heaviest drop, not to forget the U-turn from October 2018 highs, weighed on the energy stocks. The black gold marked a notable downside as OPEC+ remains divided over the future action.
Company-specific updates shift the investors' focus on DIDI that keeps bearing the burden of China’s crackdown amid allegations of collecting private data that violated Beijing’s laws. Alternatively, Amazon welcomes new Chief Andy Jessy, replacing Jeff Bezos, with around 5.0% of a daily upside.
Looking forward, Minutes of the latest Federal Open Market Committee (FOMC) meeting will be the key for the markets while the covid updates may offer intermediate entertainment.
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