Business

Stocks mostly rise but Nasdaq falls; dollar backs off 2-week high

Read more at www.reuters.com

Stock indexes mostly rose globally on Wednesday, although the Nasdaq ended lower for the second day, while the U.S. dollar eased off its highest in more than two weeks.

The Dow hit a record high and the S&P 500 ended up slightly, supported by gains in energy and other economically sensitive sectors including materials (.SPLRCM) and financials (.SPSY). The S&P 500 energy index (.SPNY) ended up 3.3%. read more

Investors were positioning themselves ahead of Friday’s U.S. monthly jobs report, expected to show that nonfarm payrolls increased by 978,000 jobs last month.

Tony Rodriguez, head of fixed income strategy at Nuveen, said it was possible Treasuries could move if the data varies much from forecasts.

“It would have to be closer to 1.2 million (in jobs gains) to have the market really feel like growth is accelerating at a pace that’s a little above what people expected coming into this,” Rodriguez said.

The Dow Jones Industrial Average (.DJI) rose 97.31 points, or 0.29%, to 34,230.34, the S&P 500 (.SPX) gained 2.93 points, or 0.07%, to 4,167.59 and the Nasdaq Composite (.IXIC) dropped 51.08 points, or 0.37%, to 13,582.43.

The Nasdaq’s move followed sharp declines on Tuesday, when technology-related shares added to losses after U.S. Treasury Secretary Janet Yellen said rate hikes may be needed to stop the economy from overheating. Yellen later said she was not “predicting or recommending” a near-term rate hike.

On Wednesday, Peloton Interactive Inc (PTON.O) shares fell 14.6% on its announcement to recall its treadmills amid reports of multiple injuries and the death of a child in an accident. read more

The pan-European STOXX 600 index (.STOXX) rose 1.82% and MSCI’s gauge of stocks across the globe (.MIWD00000PUS) gained 0.29%.

Upbeat earnings and business activity in Europe boosted stock prices there. Data showed euro zone business activity quickened last month, while the services industry returned to growth.

India’s Nifty 50 (.NSEI) was 0.8% higher as the central bank rolled out measures to support the coronavirus-ravaged economy. read more

The dollar was near flat following softer-than-expected U.S. economic data. read more U.S. private payrolls rose by the most in seven months in April, ADP data showed, as companies boosted production to meet a surge in demand amid massive government spending and rising vaccinations. But the 742,000 private jobs created fell short of the 800,000 jobs expected by economists in a Reuters poll.

A separate report showed services industry activity eased in April from a record level in March, likely due to shortages of inputs as demand surged, data from the Institute for Supply Management showed.

The dollar index fell 0.007%, with the euro down 0.07% to $1.2004.

In the U.S. Treasury market, yields drifted lower as inflation expectations leaped to multi-year highs even as Fed officials downplayed the risk of a big rise in inflation.

The benchmark 10-year yield was last down 1 basis point at 1.5819%, holding below a 14-month high of 1.776% reached on March 30.

Oil ended little changed after two days of gains despite a sharp drawdown in U.S. crude stocks. Brent crude rose 8 cents to settle at $68.96 a barrel, while U.S. West Texas Intermediate (WTI) crude eased 6 cents to settle at $65.63. read more

Spot gold added 0.5% to $1,787.57 an ounce. U.S. gold futures gained 0.29% to $1,784.10 an ounce.

Our Standards: The Thomson Reuters Trust Principles.

Read more at www.reuters.com

Show More

Related Articles

Back to top button