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Shares opened higher on Tuesday, rebounding after the loss of a day earlier that had seen the Nasdaq Composite, a state-of-the-art player, fall into correcting territory for fear of increased regulatory oversight , with support linked to renewed hopes of US-China trade negotiations.
Investors also expected a speech by Federal Reserve Chairman Jerome Powell, to the effect that the central bank seems to want to cut interest rates. Recent movements in financial markets reflect growing expectations for easier monetary policy.
How are the benchmarks used?
The Dow Jones Industrial Average
DJIA, + 1.42%
increased by 233.21 points, or 0.9%, to 25,052.99, while the S & P 500 index
SPX, + 1.26%
was up 23.18 points, or 0.8%, to 2,767.63. The Nasdaq composite
COMP + 1.43%
earned 65.86 points, or 0.9%, at 7,398.88.
On Monday, the Nasdaq lost 120.13 points, or 1.6%, to 7,333.02 to end in corrected territory, defined as an index closing at least 10% below its recent peak, which, for the Nasdaq had reached a record of 8,164 visits on May 3rd.
The S & P 500 index lost 7.61 points, or 0.3%, to 2,744.45, while the Dow cleared its deficit by more than 100 points to come close to 4.74 points at 24,819.78.
What motivates the market?
The Nasdaq's 10% drop since its May 3 record, which peaked on Monday, fits Wall Street's definition of a correction, driven mainly by the increased threats that US regulators could reduce the size of the companies. technology and social media like Facebook Inc.
FB -0.77%
and Google-parent Alphabet Inc.
GOOG, + 0.78%
GOOGL, + 0.78%
for potential violations of antitrust regulations.
Increased surveillance against some of the key members of the so-called FANG actions, which also include Netflix Inc.
NFLX, + 3.27%
and Amazon.com Inc.
AMZN, + 0.91%
intervenes amid growing concerns about the economic downturn, both inside and outside the United States
Government bond yields, which hold their lowest yields since 2017, reflect these fears. The yield of a 10-year US Treasury bill
TMUBMUSD10Y, + 2.45%
was about 2.10% against 2.085% on Monday. The decline in bond yields, which goes in the opposite direction to prices, also shows the rise in the outlook on Wall Street that the Federal Reserve will reduce rates in the coming weeks.
Market participants may seek clarification on the Federal Open Market Committee's decision later Tuesday after Fed Chairman Jerome Powell's statement at 9:55 am Eastern Time. The comments come after St. Louis Fed President James Bullard said on Monday that rate cuts "may be warranted shortly" in the midst of international trade disputes led by the United States.
Analysts also pointed to the Chinese Ministry of Commerce's statement that "differences and friction" should be resolved through talks, according to press reports.
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What stocks are under discussion?
Actions of Uber Technologies Inc.
UBER, -0.26%
could be at the center of concerns, as Tuesday marks the end of a "quiet period" during which investment banks that have taken the initial public offering of the public stimulus company have not could comment on the company. Shares rose 2.7%.
Analysts SunTrust, BTIG and William Blair have started to hedge stocks with buy or outperformance recommendations, shares up 1.1% before the start of trading.
Tiffany and company.
TIF, + 4.28%
Inventories escaped pre-market weakness and rose 4% after the luxury jewelry retailer announced a 5% decline in sales growth in the same quarter.
Actions of Ventas Inc.
VTR, -2.62%
fell 2.4%, after the senior housing and health care company announced Monday that it was issuing 11 million new shares to the public at $ 62.75 action. The stock closed at $ 64.15 Monday.
Actions of CVS Health Corp.
CVS, + 3.99%
was in discussion after the company announced that it expected that its merger with the Aetna health insurance company would result in synergies of more than $ 300 million in 2019 and $ 800 million in 2020. The company announced that it would expose a series of measures during a day of investors later Tuesday, aimed at accelerated growth. The stock increased by 3.1%.
What do the strategists say?
"Bullard's dovish comments support the current aggressive message from monetary operators, namely a July 31 rate cut [Federal Open Market Committee]The meeting is an urgent call, with a probability of 59.1%, "UniCredit analysts wrote in a research note released on Tuesday.
How are other markets traded?
Asian stocks closed mainly down on Monday, Japan's Nikkei 225
NIK -0.01%
end of the day flat, while the Shanghai Composite Index in China
SHCOMP, -0.96%
down 1% and Hang Seng Hong Kong
HSI, -0.49%
lost 0.5%. Inventories in Europe were up, with the Stoxx Europe 600
SXXP, + 0.43%
up 0.6%.
In commodity markets, the price of oil
CLN19, -1.09%
was in decline, while gold prices
GCN19, + 0.02%
step by step. The US dollar
DXY, + 0.07%
meanwhile, fell slightly against a basket of his peers.
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