The World Equity Index fell on Tuesday, with US Treasury yields declining as trading volumes fell, economic news fell, and a lack of catalysts to raise stock prices triggered sales by investors concerned about further market rises.
Technology-rich Nasdaq fell 2.3%, the largest one-day fall in six weeks. Meanwhile, yields on 10-year government bonds fell to a low level of 1.557%. This is usually a slide that pushes up tech stocks.
The recent rise in commodity prices has slowed the decline in stock markets and spurred talk of a surge in inflation.
The Refinitiv / CoreCommodity CRB index traded at a high for nearly three years as commodities grew in opposition to investor betting demand as the economy resumed.
Investors have sold high-flying tech stocks that have doubled the value of the Nasdaq since its lows in March 2020, buying government debt and pushing down yields.
Apple Inc, Amazon.com Inc and Microsoft Corp led the decline in the Nasdaq and S & P 500.
Patrick Really, Chief Market Strategist and Senior Trader at Incapital, said: “We have set a lot of prices to resume optimism.”
MSCI’s global equity market benchmark fell 1.06% to 695.88.
On Wall Street, the Dow Jones Industrial Average fell 0.26%, the S & P 500 fell 1.03%, and the Nasdaq Composite fell 2.27%.
Value stocks, which are economically sensitive, fell 0.2%, outpacing the 2% decline in growth stocks. After today’s slide, the Russell 1000 Value Total Return Index has nearly quadrupled the performance of the Russell 1000 Growth Total Return Index so far this year.
European tech stocks plummeted 3.8% on the worst day since late October. Deutsche Boerse fell 2.5%, the highest in Europe, due to its high tech stock mix.
Chipmaker Infineon expects supply constraints in the automotive sector to ease in the second half of the year, dropping 5.9% among the top drugs in the German index after announcing that it is likely to make up for volume losses in 2022. did.
In the currency market, the dollar showed some retreat to partially ease last month’s long depreciation as investors squared their positions ahead of the monthly salary data scheduled for the weekend.
The dollar index rose 0.337% and the euro fell 0.42% to $ 1.201. The Japanese yen fell 0.22% against the greenback at 109.31 to the dollar.
Signs of the world’s major central banks rushing into a major stimulus package are 10-year Treasury yields below 1.65% and Germany’s Bund yield below 13-month highs Did.
At its fifth consecutive meeting, the Australian Central Bank has promised to keep key interest rates near zero overnight and maintain its policy super-supportive for the long term.
Australia’s S & P / ASX200 rose 0.6% and Hong Kong rose 0.7% in Asia’s thin trade due to both Chinese and Japanese holidays.
Cryptocurrency Ether has powered up to another record peak near $ 3,500 before comparing profits on transactions 5.4% lower.
Palladium prices soared to record highs, boosted by concerns over a shortage of automotive catalytic metals as demand gradually improved.
Oil prices rose after more U.S. states eased pandemic blockades and the European Union tried to attract travelers, but the surge in COVID-19 cases in India limited profits. ..
Brent crude oil futures rose $ 1.32 to $ 68.88 a barrel and US crude oil futures rose $ 1.20 to $ 65.69 a barrel.
Gold fell 1% after US Treasury Secretary Janet Yellen said interest rates might need to be raised.
US gold futures fell 0.9% to trade at $ 1,776 an ounce.
Stocks fall as Nasdaq falls and dollar rises-SABC News
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