US stocks trade mixed after similar result the day before



[ad_1]

U.S. equity futures are trading mixed early on Tuesday amid optimism about a growing economy, increased COVID-19 vaccinations and the Fed’s rate hold.

Teleprinter security Last Change Change%
I: DJI MEDIUM DOW JONES 33171.37 +98.49 + 0.30%
SP500 S&P 500 3,971.09 -3.45 -0.09%
I: COMP NASDAQ COMPOSITE INDEX 13059.646593 -79.08 -0.60%

On Monday, the S&P 500 slipped 0.1% to 3,971.09, recovering most of a 0.8% decline earlier today. Banks saw some of the biggest losses, while tech stocks also fell across the board, as China announced more tax breaks to bolster its own chip sector.

The Dow Jones Industrial Average rose 0.3% to 33,171.37. The highly technological Nasdaq fell 0.6% to 13,059.65.

THE MOST OPTIMISTIC MANUFACTURERS IN 2 YEARS, EXPRESS CONCERNS WITH PRO ACT: SURVEY

The Russell 2000 index of small company stocks fell more than the market as a whole, losing 2.8% to 2,158.68.

Many are betting that a supercharged economic recovery is on the way thanks to COVID-19 vaccinations, huge U.S. government spending, and consistently low Federal Reserve rates. But this is raising concerns about rising inflation and possibly overly high prices in the market.

New economic reports this week could help show whether stocks deserve the high prices they’ve hit. Among the headliners is Friday’s employment report, which economists expect to reflect a sharp acceleration in hiring.

U.S. equity futures are trading mixed early on Tuesday amid optimism about a growing economy, increased COVID-19 vaccinations and the Fed’s rate hold. (Nicole Pereira / New York Stock Exchange via AP)

President Joe Biden will also give details on his proposals to rebuild roads, bridges and other infrastructure on Wednesday. The actions of commodity producers have recently rallied on expectations of heavier spending on such projects, even though many past presidential administrations have failed to do so.

Among the winners on Wall Street was Boeing, which rose 2.3% after Southwest Airlines announced it would order 100 737 MAX jets. Regulators in the United States and other countries have allowed the aircraft model to resume flight, after it was grounded around the world in 2019 after two crashes that killed 346 people.

Meanwhile, Asian stocks were mostly higher on Tuesday as investors focused on the reasons for optimism despite a weak close on Wall Street.

Japan’s core index edged up 0.2% to end at 29,432.70. The Australian S & P / ASX 200 lost its early gains to fall 0.9% to 6,738.40. South Korea’s Kospi added 1.1% to 3,068.75. The Hong Kong Hang Seng gained 1.1% to 28,647.79, while the Shanghai Composite rose 0.5% to 3,451.89.

“Asian markets can be seen to a large extent on the water,” said Jingyi Pan, senior market strategist at IG in Singapore. She said the markets “are waiting for new catalysts to take a definite direction.”

CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS

One of the reasons for the optimism in the market was the reopening of the Suez Canal, one of the world’s most vital waterways, after the release of a stranded cargo ship. At least 113 of the more than 420 ships that had waited for the release of the Ever Given were due to cross the canal by Tuesday morning Egypt time.

The complete elimination of the backlog of delayed vessels is expected to take at least an additional 10 days.

Nomura Holdings shares fell further after falling 16.3% on Monday. But they recouped some of their morning losses to end up 0.6% lower in Tokyo trading.

On Monday, Nomura and Swiss bank Credit Suisse said they were facing potentially large losses due to their relationship with a major client, although the exact magnitude is still unclear. Nomura estimated that the claim against his client could amount to around $ 2 billion.

Credit Suisse said it “and a number of other banks” are in the process of exiting transactions they made with a major US-based hedge fund, which defaulted on a “call from margin ”last week. A margin call occurs when a broker tells a client to put money in after borrowing money to make trades. Reports identified the client as New York-based Archegos Capital Management.

U.S. banks were caught in the downstream as investors questioned whether the corrected trades would be isolated or the effects would spread.

Hopes for an economic recovery have heightened as vaccine deployment progresses in parts of Europe as well as the United States, and the reports have proven to be effective in preventing serious illness. Developing economies were also receiving the vaccine.

Japan was an exception, with one of the slowest vaccine deployments in Asia, with less than 1% of its population, almost all medical workers, having been vaccinated so far. The general public may not get vaccinated until the end of the year.

In Japan and elsewhere, concerns are also growing that people are abandoning social distancing measures too early because they get vaccinated, leading to new waves of infections.

GET FOX BUSINESS ON THE ROAD BY CLICKING HERE

In energy trading, benchmark US crude fell 23 cents to $ 61.33 per barrel in electronic trading on the New York Mercantile Exchange. He won 59 cents to $ 61.56. Brent, the international standard, fell 24 cents to $ 64.73 a barrel.

In currency trading, the US dollar rose from 109.82 yen to 110.17 Japanese yen. The euro cost $ 1.1763, compared to $ 1.1766.

___

AP Business editors Stan Joe, Damian J. Troise and Alex Veiga contributed.

[ad_2]
Source link