- Dow, S&P 500 refresh record tops but tech-stocks weighed on Nasdaq.
- 1.2 trillion Infrastructures spending plan passes through the Senate.
- Firmer Treasury yields, covid concerns and Fed Chair appointment challenge bulls.
- Pfizer refreshes all-time high, energy stocks benefit from oil’s recovery.
US equities post a mixed daily performance for Tuesday as stimulus optimism battle concerns over the coronavirus and the future leadership of the US Federal Reserve (Fed) join cautious mood ahead of the US Consumer Price Index (CPI) data for July.
Read: Forex Today: Dollar strong ahead of US inflation
US Senate passes President Joe Biden’s $1.2 trillion infrastructure spending plan and helped the Dow Jones Industrial Average (DJI) as well as S&P 500 to refresh record tops, not to forget the oil prices rebound. However, the Nasdaq had to bear the burden of a drawdown in top-tier technology stocks as firmer bond coupons, fears of virus concerns and the Fed’s future weigh on the tech-heavy index.
That said, DJI closed with 162.82 points or 0.46% on a daily upside to 35,264.67 whereas S&P 500 added 4.4 points, or 0.10%, to end Tuesday’s North American trading session around 4,436. Nasdaq bucked the uptrend with 72.1 points of a downside, or 0.49%, to close near 14,788.
The US Dollar Index (DXY) rose for the third consecutive day to poke July’s high as relief package news from the Senate joined Fed policymakers’ cautious optimism. Further, the US 10-year Treasury yields had additional support from the safe-haven desk in the form of downbeat gold prices and Delta covid variant spread.
FANG, Nvidia and Microsoft all fell during an overall sell-off in the technology stocks. Energy shares and vaccine producers took the other end to keep the buyers optimistic.
Given the first hurdle for President Biden’s stimulus passed, traders may shift their attention to the US CPI for July, expected to ease from 0.9% MoM to 0.5%, for intraday direction. Also important will be the virus updates, chatters concerning who will lead the Fed after Jerome Powell and the US budget will be crucial too.
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