The US stock index closed modestly lower on Tuesday after Monday’s fantastic rally. The dynamics were familiar: concerns about rising bond yields remained in the spotlight, along with optimism about the economic recovery and rollout of vaccines.
closed down 144 points, or 0.5%, near today’s lowest levels. The
lost 0.8%, and
fell 1.7%. On Monday, investors had bought the decline in equities after last week’s declines. The Dow collected more than 600 points, and the S&P 500 had its best trading day since June.
The price of gold broke a five-day losing streak on Tuesday to rise 0.6%, but is still close to eight-month declines.
In Asia on Tuesday, Tokyo
fell 0.9%, while both Hong Kongs
Shanghai Composite Index
fell 1.2%. The
in London closed up 0.4%
in Paris rose 0.3% and Frankfurt
The declines in Asian equities followed a warning from China’s leading bank regulator that stock market rallies on Wall Street and elsewhere in the world looked like bubbles and would eventually correct.
Guo Shuqing, head of the China Banking and Insurance Regulatory Commission, attributed the rise in asset prices to the central bank’s efforts to combat the economic downturn in the Covid-19 pandemic over the past year.
“Asian markets have slipped back today after Chinese regulators warned of the prospect of asset bubbles in overseas markets. This is hardly a new phenomenon, there has been talk of bubbles in US markets for several months, and China’s real estate market is also not immune to this type of concern, says Michael Hewson, analyst at CMC Markets.
Bond yields and central bank policy remain major macro issues for investors worldwide. The yield on the 10-year US Treasury Department fell 0.03 percentage points on Tuesday to about 1.41%. It is up from below 1% at the beginning of the year. Bond yields in other countries have also risen in 2021, but not as much as US yields.
“We see long-term real interest rates continue to rise to more normal levels, pushing up nominal interest rates as a weaker currency immunizes the domestic economy from global deflation,” Steven Ricchiuto, chief economist at Mizuho Securities USA, wrote on Tuesday.
Federal Reserve officials have so far stuck to their dovish message in recent weeks, despite rising returns.
“It was noteworthy that while interest rates in Europe fell back yesterday, US 10-year interest rates were kept stable, indicating some uncertainty as to whether Fed officials will push back harder, especially given the sharp rise in ISM. manufacturing prices yesterday which reached the highest levels since 2008, says Hewson.
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(ticker: ZM) gave up a previous 7% profit to close down 9%. The the company reported a quarterly result at $ 1.22 per share on Monday night, with estimates of 79 cents, on revenue of $ 882 million, beating expectations of $ 811 million.
(LMND) shares fell 16.6% after fintech insurer beat estimates for its most recent quarter but offered a so-so outlook.
(RKT) share closed up 71.2%, continues a fleeting stretch for the mortgage. Rising bond yields are beginning to translate into higher mortgage rates, but Tuesday’s rise was about a Reddit-driven short squeeze.
(UWMC) was also included in the measure and ended 19.5%.
(TGT) shares fell 6.8% after the big box retailer posted $ 2.67 earnings per share, better than expected at $ 2.54, on revenue of $ 28.3 billion, topping the forecast at 27 , $ 5 billion.
(TRIP) shares rose 6.7% after Citigroup upgraded the stock to buy from Neutral.
(MS) shares rose 2.1% as Daiwa Securities upgraded the stock to Outperform from Neutral.
(BYND) increased 5.1% after being upgraded to Buy from Neutral at Citigroup.
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