- The S&P 500, the Dow Jones, and the Nasdaq posted gains between 0.92% and 1.30%.
- Chinese real-estate woes dented the market sentiment in the Asian session.
- US Stocks rose despite higher US T-bond yields.
- Facebook, Microsoft, Amazon, and Apple recovered from Monday’s losses.
Tuesday was a turnaround for equities as the major US stock indices edged higher, as the market sentiment improved throughout the day since the European session. The S&P 500, the Dow Jones Industrial (DJI), and the Nasdaq finished the session on the right foot, posted gains of 1.1%. 0.92% and 1.3%, respectively.
The market sentiment spurred the bounce in stocks
The market sentiment improved during the day. In the Asian session, the market mood was negative, as Chinese woes kept investors on their toes. Its real estate market is under heavy pressure, which Evergrande spurred, but now Fantasia Holdings Group Co missed a dollar bond payment, adding to the downbeat sentiment.
As the European session began, the market shifted to a risk-on mood, on the back of good macroeconomic data and comments of Eurogroup Minister Paschal Donohoe, who said that the euro-area inflation should be expected to fall in the next year.
During the New York session, the market kept the pace set by European traders, with US stock indices trimming Monday’s losses, despite rising US T-bond yields, with the 10-year benchmark note rate getting back above 1.50% and the US Dollar Index testing the 94.00 thresholds, to finish the day at 93.98
On Tuesday, technology stocks made a comeback, led by Facebook (FB), with its shares gaining 2.1% following Monday’s blackout failure of its services. Microsoft, Amazon, and Apple followed FB’s footsteps, adding 2%, 1%, and 1.4%, respectively.
In the commodities market, gold and silver were struck by the rise in US T-bond yields. Gold finished the day at $1,759.62 lost 0.57%, while silver ended at $22.60, down 0.40%.
Contrarily, crude oil rallied for the fifth consecutive day. Western Texas Intermediate (WTI) finished the day above $79.04, up almost 2%, whereas natural-gas prices rose 9.5% to $6.31 per million Btu’s.
On the macroeconomic front, the US trade deficit for August widened to $73.3 Billion. On the contrary, the US ISM Services PMI for September increased to 61.9 from 61.7 in August, despite supply chain issues and labor shortages.
In the crypto environment, Bitcoin broke above $50,000 for the first time since September 7.
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
EUR/USD fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.