Wall Street Close: Nasdaq stays firmer even as Dow, S&P 500 retreat
- US equity benchmarks closed mixed with tech shares favoring Nasdaq.
- Tesla jumps over 5.0%, consumer discretionary steps back amid mixed PMIs.
- Fedspeak convinces markets of no immediate rate fears.
- Doubts over Biden’s infrastructure spending, covid variant probe the bulls.
US share market fades the bullish momentum even as Fed policymakers manage to tame the rate-hike woes. The underperformance could be traced to deadlock over US President Joe Biden’s next stimulus and rising fears of the Delta Plus variant of the coronavirus (COVID-19). Also challenging the sentiment could be the mixed PMIs and Sino-American tussles.
Against this backdrop, Dow Jones Industrial Average (DJI) dropped 71.34 points or 0.21% while S&P 500 snapped a two-day uptrend with a 0.11% downside, or 4.36 points, to 4,241.84. It should, however, be noted that Nasdaq cheered upbeat Treasury yields and firmer technology shares with 18.5 points, or 0.13%, of daily gains while refreshing an all-time high with 14,317.70.
Among the major performers, Tesla’s 5.3% upside contrasted Moderna’s over 6.0% downside.
Fed Chair Jerome Powell’s reaffirmation of no major challenge to the Fed’s current policy, gains support from President and CEO of the Federal Reserve Bank of Boston Eric Rosengren who expects, “most price increases will be reversed going into next year.” Also backing Powell was US Treasury Secretary Janet Yellen by saying, “Most measures of inflation expectations remain well-anchored.”
Elsewhere, the US restricts exports to five Chinese firms over rights violations while Beijing warned Washington over warships in Taiwan Strait. Both the economies have been at loggerheads of late.
Furthermore, CNN mentioned that the next 24 hours could determine whether two of President Joe Biden's major bipartisan priorities, infrastructure and policing legislature, will collapse.
Datawise, US Manufacturing PMI for June was firmer but the Services gauge repeats a lack of strong growth. Further, New Home Sales confirmed weakness in the American housing market with the latest figures for May.
Moving on, US Durable Goods Orders, Personal Consumption Expenditures and Weekly Jobless Claims will decorate the calendar. However, Fedspeak and qualitative factors will keep the driver’s seat.
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