US equity markets hit new highs, treasury yields rise as turbulent week draws to a close
- S&P 500, the Nasdaq hits records
- Flash PMI data mixed, COVID concerns hurt outlook
- Flat oil
- US Dollar, US Treasury Yields Rise
NEW YORK, July 23 (Reuters) – The S&P 500 and Nasdaq indexes hit record highs on Friday after an eventful week in which investors worried about increasing cases of COVID-19, boosted by the Delta plus variant contagious, while US Treasury yields rose ahead of a Federal Reserve meeting next week.
Megacap’s tech stocks helped push major US indices up, with the S&P 500 and Nasdaq on track to close at record highs. Yields on U.S. Treasuries were also up, as was the dollar, with investors eyeing next week’s Federal Reserve meeting, where the U.S. recovery and Fed support for the economy will be at the center of the ‘Warning.
“We are ending the week with a very nice trade, and it is mainly driven by profits and profits especially in stocks that speak to the consumer, which is not a new story but it is a story that adds momentum to trade in the second half of the year, ”said Peter Kenny, founder of Kenny & Co LLC, the parent company of Strategic Board Solutions and Kenny’s Commentary, a political and economic newsletter aimed at subscribers.
Despite its decline, oil should end the week with little change. Read more
By mid-afternoon, the Dow Jones Industrial Average (.DJI) was up 217.79 points, or 0.63%, to 35,041.14, the S&P 500 (.SPX) was up 42.9 points, or 0.98%, to 4,410.38 and the Nasdaq Composite (.IXIC) added 155.56 points, or 1.06%, to 14,840.16.
Investors assume that “things will get better, travel is going to increase,” said Steve Massocca, managing director of Wedbush Securities. “There are concerns about the Delta variant.
“If this thesis is jeopardized, it will put a stop to the ‘vertigo’ of the market,” he added.
Some parts of the United States are re-implementing mask warrants due to new cases, while others have not, which is confusing. Read more
Business activity in the United States grew at a moderate pace for a second consecutive month in July amid supply constraints, suggesting a slowdown in economic activity, a report by data firm IHS revealed on Friday. Markit. IHS Markit said its US composite PMI output index, which tracks the manufacturing and services sectors, fell to a four-month low of 59.7 from 63.7 in June. A reading above 50 indicates growth in the private sector. Read more
The Dow Jones Industrial Average (.DJI) rose 237.61 points, or 0.68%, to 35,060.96, the S&P 500 (.SPX) gained 37.39 points, or 0.86%, to 4,404.87 and the Nasdaq Composite (.IXIC) added 115.07 points, or 0.78%, to 14,799.66.
Positive corporate earnings helped the stock market. American Express Co (AXP.N) jumped 1.7% after posting better-than-expected second-quarter earnings.
Social media companies Twitter Inc (TWTR.N) and Snap Inc (SNAP.N) gained 3.8% and 24.5% respectively, after their strong results.
The dollar index rose 0.085%. Read more
The 10-year T-bill yield hovered around 1.3%, nearly 17 basis points higher than a five-month low set on Tuesday, but still was in the low end of a recent range . The benchmark note traded up 1.8 basis points to 1.285%.
Financial markets have swung from one direction to the other this week as investors attempt to assess what the burgeoning Delta variant means for the global economy.
After posting its biggest one-day drop since May on Monday, the S&P 500 stock index posted the biggest one-day jump since March a day later. He should end the week higher. The currency, bond and commodity markets experienced similar gyrations.
“The stock markets are reporting some symptoms of fatigue after a long recovery and are recognizing the peak growth environment,” said Antonio Cavarero, investment manager at Generali Insurance Asset Management.
“But in the short term, actual returns are still too low to offer an alternative, so how what happens next depends on COVID and macro data.”
Financial market volatility is expected to continue, given the resurgence of the Delta variant and economic uncertainty.
“Uncertainty has increased further with the pandemic,” said Pascal Perrone, bond portfolio manager at Eric Sturdza Investments in Geneva. “I don’t think there will be a shutdown of economies as we saw it last year, but we don’t know.”
Reporting by Jessica DiNapoli; additional reporting by Dhara Ranasinghe and Wayne Cole in Syndey; Editing by Ana Nicolaci da Costa, Pravin Char, Dan Grebler and Raissa Kasolowsky
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