- US equity benchmarks post mild losses near record tops.
- Strong US CPI, downbeat bond auction weigh on stocks ahead of Fed’s Powell.
- JPM, Goldman fail to cheer upbeat results but Pepsi benefits from strong earnings.
- Citigroup, Wells Fargo and BofA up for publishing results on Wednesday.
US equity buyers ease controls on Tuesday after strong US inflation data and poor bond auction joined the coronavirus (COVID-19) woes to weigh on the market’s sentiment.
Read: Forex Today: Dollar strengthens on soaring inflation
US Consumer Price Index (CPI) rose past 4.9% expected to 5.4% YoY while the core reading was also upwardly revised from 3.8% to 4.5%, propelling the reflation woes. Additionally, surprisingly tepid demand for a 30-year bond auction also weighed on the market’s mood. As a result, the US 10-year Treasury yield rose 5.5 basis points (bps) to 1.418%, putting a safe-haven bid under the US dollar index (DXY) to jump the most in a month.
Other than the reflation fears and bond auctions, the coronavirus (COVID-19) also weighed on the investors’ mood. The recent jump in covid variants in the Northern Hemisphere probes the economic transition from the pandemic.
The traders’ rush to risk-safety triggered a pullback in equities. That said, Dow Jones Industrial Average (DJI) dropped 0.31% or 107.39 points to 34,888.79. Further, Nasdaq and S&P 500 both stepped back from record tops, losing 55.6 and 15.42 points, or 0.38% or 0.35% in that order, while closing around 14,677.70 and 4,370 respectively.
Stock-specific details suggest JP Morgan Chase and Goldman Sachs losing above 1.0% despite beating market consensus for Q2 revenues. On the contrary, Pepsi gained over 2.0% on upwardly revised full-year economic forecasts.
Moving on, global traders may keep watching the risk catalyst and place their eyes on Fed Chairman Jerome Powell’s testimony on the Semi-Annual Monetary Policy Report before the House Financial Services Committee.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD drops toward 1.0700 after US jobs report
EUR/USD came under renewed bearish pressure in the second half of the day on Friday and declined toward 1.0700. Stronger-than-expected Nonfarm Payrolls (NFP) data helps the US Dollar gather strength ahead of the weekend and forces the pair to stay on the back foot.
GBP/USD extends slide below 1.2450 amid a stronger USD
GBP/USD dropped further and hit fresh daily lows below 1.2450 amid a stronger US dollar. The Greenback remains firm following the release of the US May jobs report. Despite losing almost 100 pips on Friday, GBP/USD is still on track for a weekly gain.
Gold falls below $1,960 as US yields rebound after US jobs data
Gold price turned south and declined below $1,960 on Friday. After the data from the US revealed that Nonfarm Payrolls rose 339,000 in May, the benchmark 10-year US Treasury bond yield gained more than 2% and recovered toward 3.7%, weighing heavily on XAU/USD.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
LULU stock adds 15% on big Wall Street beat
Lululemon Athletica did it again. In something that has become quite predictable, LULU stock sailed 14.9% higher in Friday’s premarket to $377.20 after the prized athleisure brand posted a nearly 15% earnings beat for the first quarter.