The S&P 500 and Nasdaq 100 gained on Wednesday, with both indexes hitting record highs. The financials and energy sectors led the gains as Treasury yields and crude oil advanced. Meanwhile, stocks in Europe drifted as a gauge of Chinese tech names struggled to prolong a rally.
“There aren’t many bears left,” said Irene Tunkel, chief US equity strategist at BCA Research, by phone. Withdrawals like last week’s are getting “shallower and shallower” as more people buy the downside, she said. “There is a very, very strong downward buying mentality. “
Company profits, the expansion of vaccinations, and support for monetary policy have helped mend sentiment in the face of increasing cases of the delta variant. However, the pace of the Fed’s plans to start scaling back its asset purchase program remains a key surplus, one that traders seek clarity on when Fed Chairman Jerome Powell speaks virtually. Friday.
Fiona Cincotta, senior financial markets analyst at City Index, said investors have “flipped” over whether the Fed will make a cut announcement, with the current consensus expecting the Fed to delay an announcement until. ‘in late fall, given the rise in COVID. case.
Investors are hoping to better understand the Fed’s thinking on monetary stimulus amid inflation but still mixed economic reports. The latest data from Wednesday showed that orders from U.S. commercial equipment factories unexpectedly stalled in July, marking a pause in a multi-month build-up of capital investment.
“Visibility into getting enough products to meet demand is a challenge. Dealing with your own growing cost pressures and labor shortages is another, ”said Peter Boockvar, chief investment officer of Bleakley Advisory Group, noting the uncertainty of the recovery. “On the other hand, for those who think longer term, capital investments have to take place. “
WTI crude oil gained, adding to Tuesday’s best two-day rally since November 2020. Gold fell below US $ 1,800. The dollar has changed little.
Here are some events to watch this week:
- political decision of the Bank of Korea; Governor Lee Ju-yeol briefing Thursday
- Fed officials attend Jackson Hole Economic Policy Symposium Thursday through Saturday
- US GDP, first jobless claims Thursday
- US personal income and expenditure data from July to Friday. Investors will take a close look at the personal consumption expenditure price index, a measure of inflation closely watched by the Fed.
Some of the main movements in the markets:
- The S&P 500 rose 0.2% at 4 p.m. New York time
- The Nasdaq 100 has changed little
- The Dow Jones Industrial Average rose 0.1%
- MSCI World Index up 0.2%
- The Bloomberg Dollar Spot Index changed little
- The euro rose 0.1% to US $ 1.1771
- The British pound rose 0.2% to US $ 1.3760
- Japanese yen fell 0.3% to 109.99 per dollar
- The yield on 10-year treasury bills rose five basis points to 1.34%
- German 10-year rate rose six basis points to -0.42%
- UK 10-year yield rose six basis points to 0.60%
- West Texas Intermediate crude rose 1.1% to US $ 68.30 a barrel
- Gold futures fell 0.9% to US $ 1,792.90 an ounce