Traders are awaiting fresh data
US bond yields inched upward on Monday before the testimony of Fed chair Jerome Powell. Powell’s testimony comes just days before the release of the February NFP data on Friday and the inflation report the following week.
Both of these are likely to play a significant part in the Fed’s monetary policy deliberations. As US Treasury rates went positive, growth companies like tech were compelled to pullback from session highs.
The S&P 500 increased by 0.2%, while the Dow Jones Industrial Average rose by 0.1%. Nasdaq rose by 0.2%. The IT sector’s rise, headed by Apple, kept stocks upward throughout the day.
More to read: What is a REIT?
After 6 years, Goldman Sachs offered a buy recommendation on Apple shares, highlighting the strength of the tech giant’s services sector. Tesla declined over 1% after the ev manufacturer reduced pricing in the US again this year in an effort to encourage demand. Morgan Stanley also handed a blow to Tesla by dropping the electric vehicle manufacturer as a “top choice” and elevated Ferrari.
Greenback slides on anticipation
The US dollar fell against it’s rivals on Monday as traders anticipated Powell’s testimony and employment statistics coming later this week for more signs Fed’s interest rates boost. At 104.35, the US dollar index is lower 0.26% for the day.
US dollar index 1D chart, source: tradingview.com
The euro advanced 0.35% to $1.0671, while sterling fell 0.20% to $1.2019. BoJ Governor Haruhiko Kuroda will have a final policy meeting on Thursday and Friday. The dollar rose 0.15% to 136.02 ahead of this meeting.
Crude is the hero of the day
WTI recouped previous losses and has risen for the sixth consecutive day, approaching the $80s. Futures markets have seen their best close in three weeks.
Despite expectations for a little less strong comeback in China’s economy, late-day Wall Street bulls have regained control of the black gold. West Texas Intermediate finished at $80.46, an increase of 78 cents, or 1%. Brent crude traded in London closed at $86.18, up 0.4%. Brent was at the $86 dollar mark last time on February 16th.
You may also like: What caused the stock market crash of 1929?
The April contract for gold futures lost it’s ground by $2, closing 0.11% in the red at $1852.60. The silver futures for March delivery posted a red close of 0.55%.
Post has no comment yet.