Utilities and chip stocks led the benchmark S&P 500 lower, although financial stocks recovered from Monday’s drop. The high tech Nasdaq 100 traded daily lows as Tesla Inc. turned positive. The dollar strengthened for a second day and gold slipped below US $ 1,700 per troy ounce. Oil disrupted a two-day rally ahead of the April 1 meeting of OPEC and its allies.
“So while rates have been the focus with strong prospects for a relatively imminent economic recovery, there may be more to the story,” said Mike Loewengart, Managing Director of Investment Strategy at E * Trade Financial. “Keep in mind that the tech sector has outperformed the past couple of years, so a cooldown in tech stocks that have been on fire for some time shouldn’t raise too many eyebrows. ”
The European equity benchmark hit its highest level in 13 months as momentum shifted in favor of cyclical stocks such as banks and automakers.
President Joe Biden, in a speech scheduled for Wednesday in Pittsburgh, will detail a massive increase in government spending aimed at reducing inequality and strengthening infrastructure. A tax code overhaul is also part of the plan and is already sowing discord among economists and lawmakers.
Ten-year Treasury bill yields reached 1.77%. The five-year rate rose to 0.95 percent, a 13-month high, followed by a block sale in the tickets.
ViacomCBS and Discovery rose, while U.S. certificates of deposit of Chinese companies linked to Archegos block transactions also posted gains.
Meanwhile, the United States hit a three-day record 10 million vaccines over the weekend, according to the Bloomberg Vaccine Tracker, and plans to offer vaccines to 90% of adults.
Investors focused on the strength of the recovery and inflation risks as governments increased spending to stimulate growth. Positive vaccine news contributes to risk appetite, with a real-world study from Pfizer Inc. and Moderna Inc. showing that their doses effectively prevented coronavirus infections, U.S. government researchers said.
Some key events to watch this week:
- President Biden is expected to unveil his infrastructure program on Wednesday.
- EIA Crude Inventory Report Wednesday.
- OPEC + is meeting on Thursday to discuss production levels for May.
- China Caixin PMI expected on Thursday.
- US Employment Report for March Friday.
- Good Friday begins Easter weekend in countries like the US, UK, France, Germany, Australia, and Canada.
Here are some of the main developments in financial markets:
- The S&P 500 Index fell 0.4% to 3,954.13 at 11:59 am New York time.
- The Dow Jones Industrial Average fell 0.4 percent to 33,037.04, the biggest drop in a week.
- The Nasdaq Composite Index fell 0.4 percent to 13,012.54.
- The Nasdaq 100 index fell 0.7% to 12,871.95.
- The Stoxx Europe 600 index gained 0.7 percent to 430.65, the highest in more than 13 months.
- The Bloomberg Dollar Spot Index rose 0.3 percent to 1,153.81, the highest for more than 19 weeks on the biggest gain in a week.
- The euro fell 0.3 percent to US $ 1.1724, the weakest in 21 weeks.
- The British pound fell 0.2 percent to US $ 1.3728.
- The Japanese yen depreciated 0.3 percent to 110.19 per dollar, hitting the weakest in about a year with its fifth consecutive decline.
- The yield on two-year Treasuries rose one basis point to 0.15 percent, the highest in more than a week on the largest increase in more than a week.
- The yield on 10-year Treasuries climbed one basis point to 1.72 percent, the highest in about 14 months.
- The yield on 30-year Treasuries fell two basis points to 2.38 percent, the largest drop in a week.
- Britain’s 10-year yield climbed four basis points to 0.824 percent, the highest in more than a week on the biggest increase in more than a week.
- Germany’s 10-year yield gained three basis points to -0.29 percent, the highest in more than a week.
- West Texas Intermediate crude fell 1.6 percent to US $ 60.58 per barrel.
- Gold depreciated 1.5 percent to US $ 1,687.20 an ounce, the weakest in more than three weeks on the biggest drop in nearly four weeks.
– With the help of Claire Ballentine and Olivia Raimonde.