- US equity benchmarks edged lower amid mixed catalysts.
- Downbeat data jostled with Fed policymakers’ efforts to convince markets of no reflation risk.
- Treasury yields remain pressured for fifth consecutive day, gold refreshes multi-day top.
Wall Street portrayed a sideways grind amid complex catalysts on Tuesday. Downbeat economics jostled with the US Federal Reserve (Fed) officials’ rejection of reflation fears. In doing so, the equity traders failed to cheer another bad day for the US dollar index (DXY) and the 10-year Treasury yields.
Despite the recent bounce off 89.53, DXY remained pressured for the second day in a row while also refreshing the lowest point since early January. On the other hand, the US Treasury yields a tapper fresh bottom of the month on breaking 1.60% level.
Soft prints of US CB Consumer Confidence Index and Chicago Fed National Activity Index couldn’t please bears the Fedspeak, comprising words from Vice Chair Richard Clarida, keeps rejecting tapering fears. The mixed momentum could drive markets towards gold that jumped the most in over a week to tease the $1,900 threshold.
Amid these plays, Dow Jones Industrial Average (DJI) lost 81.52 points, 0.24%, to close at 34,312.46 whereas the S&P 500 came in second with 0.21% loss, down 8.93 points, while closing around 4,188. Further, the Nasdaq struggled for a clear direction but ended the day in the red with 4.0 points of a downside, or 0.03%, to 13,657.17.
Shares of Boeing benefited from the new order news whereas technology stocks couldn’t extend the previous day’s run-up.
Moving on, a light calendar can keep markets focused on the Fedspeak and inflation theme for fresh impulse. It should, however, be noted that any surprises from the coronavirus (COVID-19) and/or vaccine news won’t be ignored as well.
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.
Recommended content
Editors’ Picks
AUD/USD jumps above 0.6500 after hot Australian CPI data
AUD/USD extended gains and recaptured 0.6500 in Asian trading, following the release of hotter-than-expected Australian inflation data. The Australian CPI rose 1% in QoQ in Q1 against 0.8% forecast, providing extra legs to the Australian Dollar upside.
USD/JPY hangs near 34-year high at 154.88 as intervention risks loom
USD/JPY is sitting at a multi-decade high of 154.88 reached on Tuesday. Traders refrain from placing fresh bets on the pair as Japan's FX intervention risks loom. Broad US Dollar weakness also caps the upside in the major. US Durable Goods data are next on tap.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Ethereum ETF issuers not giving up fight, expert says as Grayscale files S3 prospectus
Ethereum exchange-traded funds theme gained steam after the landmark approval of multiple BTC ETFs in January. However, the campaign for approval of this investment alternative continues, with evidence of ongoing back and forth between prospective issuers and the US SEC.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.