- US stocks stay pressured amid risk-off mood, downbeat US data.
- Mixed concerns over Fed tapering, virus and stimulus troubled market players.
- Techs drowned Nasdaq, Morgan Stanley battles bears over upbeat earnings.
- Biden stays optimistic over infrastructure deal, US to sanction Chinese officials.
US equities marked another disappointing day, led by technology shares, on Thursday. Reflation fears remain intact despite Fed Chair Jerome Powell’s second attempt to tame the policy hawks. Also adding to the risk-off mood could be the coronavirus (COVID-19) woes and mixed data from the US.
Fed’s Powell reiterated less urgency for policy adjustments but St. Louis President James Bullard contrasted with the push for tapering. Also, mixed manufacturing figures from Philadelphia and New York, coupled with weaker-than-prior Jobless Claims, have an inflation component arguing the Fed policymakers’ rejection to act.
On a different page, US President Joe Biden recently said, per Reuters, that he was confident he could win a deal to pass a bipartisan infrastructure bill. However, news that the US is preparing to impose sanctions on Friday on a number of Chinese officials over Beijing’s crackdown on democracy in Hong Kong, as well as a warning to international businesses operating there about deteriorating conditions, per Reuters, weigh on sentiment.
Against this backdrop, shares of Nvidia and NXP Semiconductors drop over 4.0% to drag Nasdaq down by 0.70% or 101.80 points to 14,543.10. Meanwhile, S&P 500 followed the suit with a 0.33% daily loss to 4,360.03. However, Dow Jones Industrial Average (DJI) gained 0.15% on a day, up 53.79 points, to 34,987.02 by the end of Thursday’s North American session.
Contrary to IT companies that weighed on Nasdaq, banks helped DJI to post mild gains. Among them, Morgan Stanley and US Bancorp benefited from upbeat earnings.
Amid these plays, US 10-year Treasury yields dropped for one more day, whereas S&P 500 Futures remain sluggish by the press time.
Moving on, US Retail Sales and the preliminary readings of the Michigan Consumer Sentiment Index, expected 0.4% for June and 86.5 for July respectively, will be important to watch for fresh impulse.
Read: US June Retail Sales Preview: Analyzing major pairs' reaction to previous releases
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