Wall Street stocks: Nasdaq hit all-time-high along with Apple, Netflix and Amazon
|- The Nasdaq composite reached a record closing high, as the index was underpinned by the performance of tech shares.
- The S&P 500 and the Dow Jones closed the day virtually unchanged as international trade remains a subject of worry for the markets.
The S&P 500 Index was virtually unchanged gaining 0.07% closing at 2,748.80 while the Dow Jones Industrial Average lost 0.06% to 24,799.97. On the other hand, the tech-heavy Nasdaq Composite Index rose 0.41% to 7,637.86 this Tuesday as it reached a record closing high.
The Nasdaq was led by Netflix, Amazon and Apple while the S&P 500 and the Dow Jones traded mainly sideways as investors are worried about international trade as the US-China trade war saga is far from over.
Additionally, last week the US decided to impose tariffs on imported steel and aluminium from Mexico, Canada and the European Union. The EU said it would impose countermeasures while Canada said they would respond with “dollar-for-dollar” tariffs on the US. Meanwhile, Mexico said it would target product such as cheese, pork and steel.
"There are direct and indirect consequences to the tariff tiff. First, the direct impact will be on import prices and will be borne by companies and industries that rely on imported steel and aluminum. The increased prices will either be passed onto consumers, or will impact margins," commented Katie Nixon, chief investment officer at Northern Trust Wealth Management. "From an indirect perspective, the process around trade negotiations has been fraught with stutter steps and reversals, and has contributed to a general sense of uncertainty over the direction of the global economy," she added. "It is unequivocal that broad-based tariffs or a trade war will put a constraint on global growth while lifting the structural governor on inflation."
On the macroeconomic front, the US ISM Non-Manufacturing PMI came above expectations at 58.6 versus 57.5 expected in May. A reading above 50 suggests economic expansion.
Meanwhile, the recent US protectionist measure will be debated at the 44th G7 (Group of Seven leading industrialized nations) summit on June 8 in Canada.
Over in Italy, the FTSE MIB was the worst performing index in Europe, after a speech by the country's new prime minister. Giuseppe Conte called for "radical change" in his speech and said the anti-establishment government is ready to introducing universal basic income as well as cracking down on immigration. Italy’s political situation saw markets worldwide be in risk-off mode last week.
Nasdaq daily chart
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