Stocks in the United States are under pressure due to a risk-off environment and disappointing US data.
Market participants were concerned by mixed fears about Fed tapering, the virus, and stimulus.
Nasdaq was drowned by techs, while Morgan Stanley is fighting bears over good earnings.
Biden is upbeat about the infrastructure deal, and the US is planning to sanction Chinese officials.
On Thursday, US equities had another poor day, led by technology stocks. Despite Fed Chair Jerome Powell’s second attempt to calm the policy hawks, inflation anxieties remain. The coronavirus (COVID-19) troubles, as well as mixed data from the United States, could add to the risk-off mentality.
Powell reaffirmed the Fed’s lack of urgency for policy changes, but St. Louis President James Bullard criticized the demand for tapering. In addition, mixed manufacturing data from Philadelphia and New York, combined with lower-than-expected Jobless Claims, have an inflation component, justifying the Fed’s refusal to act.
On a different note, according to Reuters, US President Joe Biden recently stated that he was optimistic in his ability to secure an agreement to approve a bipartisan infrastructure plan. However, Reuters reports that the US is preparing to impose sanctions on a number of Chinese officials on Friday in response to Beijing’s crackdown on democracy in Hong Kong, as well as a warning to multinational businesses operating there about deteriorating conditions.
In light of this, shares of Nvidia and NXP Semiconductors have fallen over 4%, dragging the Nasdaq down by 0.70 percent, or 101.80 points, to 14,543.10. Meanwhile, the S&P 500 index fell 0.33 percent to 4,360.03 on the day. However, by the close of Thursday’s North American session, the Dow Jones Industrial Average (DJI) had gained 0.15 percent on the day, rising 53.79 points to 34,987.02.
Banks, in contrast to IT companies, which dragged on Nasdaq, helped DJI register modest gains. Morgan Stanley and US Bancorp were among those who benefited from improved profitability.
In the midst of these maneuvers, US 10-year Treasury yields fell for another day, while S&P 500 Futures remained sluggish as of press time.
Moving on, the preliminary readings of the Michigan Consumer Sentiment Index for June and July, which are predicted to be 0.4 percent and 86.5 percent, respectively, will be vital to watch for new impulse.
Read: June Retail Sales Predictions in the United States: Examining Major Pairs’ Reactions to Previous Releases/n
