As investors returned from a three-day weekend, U.S. stocks were in a holding pattern at record highs on Tuesday. Oil prices, which had surged to six-year highs after talks between the Organization of Petroleum Exporting Countries and its allies failed to reach an agreement on a proposal to expand output in the coming months, were also being watched by investors.
What are the most important benchmarks doing?
The Dow Jones Industrial Average DJIA, -0.76 percent fell 110.83 points, or 0.3 percent, to 34,675.52 points.
The S&
At 14,671.86, the Nasdaq Composite COMP, -0.01 percent was down 32.54 points, or 0.2 percent.
Markets in the United States were closed on Monday in honor of Independence Day, which fell on Sunday. On Friday, the S&P 500 set a new high for the seventh day in a row, the longest such sequence since 1997, while the Nasdaq Composite and Dow also hit new highs. What is the market’s driving force? In recent weeks, stocks have progressively moved further into record territory as investors shifted their focus to a growing economy and the easing of inflation fears. “After a favorable close to Q2, risk sentiment remains optimistic as we start the second half of the year. The S& What You Should Know: Here’s what may convert a stock market pause into a larger correction. Increased COVID-19 vaccinations and central bank stimulus are seen as contributing to strong economic growth, while fears of uncomfortably high inflation have been kept at bay because the Federal Reserve and other central banks insist that increased price pressures are a temporary phenomenon caused by supply-chain bottlenecks, he said. Read more about what to expect if “peak everything” has already happened and markets are feeling the pull of gravity once more. See also: Is the market pricing in ‘peak growth’? According to a top strategist, these graphs show as much. Analysts believe that inflation fears may resurface as a result of the breakdown of OPEC+ talks aimed at further relaxing supply limitations beginning in August. Crude benchmarks have retreated from highs last seen in 2014. The talks were called off on Monday after the United Arab Emirates refused to budge on its demand to raise the baseline used to set its output level and opposed to a plan to prolong the framework for the current supply-cut program from April 2022 to the end of next year. The rise in oil prices will draw attention to energy stocks. At 9:45 a.m. Eastern, the final reading of the IHS Market services purchasing managers index for June will be released. The Institute for Supply Management’s services index, which will be released at 10 a.m., is predicted to drop from 64% to 63.3 percent. A value of greater than 50% shows that activity is increasing. Which businesses are being scrutinized?
AMC Entertainment Holdings Inc. AMC, +1.12 percent, a popular meme stock, surged 3.9 percent after the movie theater company announced it will no longer seek shareholder approval to sell more shares.
Didi Global Inc. DIDI, -22.76 percent, a Chinese ride-hailing firm, had its stock tumble about 24% after the Chinese Cyberspace Administration prohibited new customers from signing up for DiDi’s ride-hailing app due to security concerns.
Full Truck Alliance YMM, -20.54 percent shares were down roughly 19 percent, and Kanzhun Ltd. BZ, -11.62 percent shares were down 7.7 percent, as their apps were also blocked. Existing app users will be able to continue to use their services.
Nextdoor Inc. is ready to go public, with the neighborhood network business announcing a merger agreement with special-purpose acquisition company Khosla Ventures Acquisition Co. II KVSB, +6.61 percent on Tuesday. The merged company is valued at around $4.3 billion. The stock of KVSB increased by 4.5 percent.
What is the state of other markets?
The 10-year Treasury note yield, TMUBMUSD10Y, 1.370 percent, decreased 3.3 basis points to 1.402 percent. The yield curve and the price of debt move in opposite directions.
The ICE U.S. Dollar Index DXY, +0.34 percent, which measures the currency against a basket of six main competitors, increased 0.2 percent.
On the New York Mercantile Exchange, the US oil benchmark CL00, -1.14 percent fell 0.7 percent to $74.59 a barrel. Gold futures GC00, +1.35 percent increased 1.4 percent to $1,807.50 per ounce.
European equities were mixed, with the FTSE 100 UKX, -0.84 percent down 0.2 percent and the Stoxx Europe 600 index SXXP, -0.46 percent up 0.2 percent.
In Asia, the Shanghai Composite SHCOMP, -0.11 percent declined 0.1 percent, while Hong Kong’s Hang Seng Index HSI, -0.25 percent dropped 0.3 percent and Japan’s Nikkei 225 NIK, +0.16 percent jumped 0.2 percent./n
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