- US equities closed mixed as DJI30 marked corrective pullback.
- Apple led technology giants’ south-run, Yellen confused traders.
- US ISM Services PMI, ADP Employment Change data will be important.
Wall Street benchmarks closed mixed on Tuesday despite the downpour of the technology shares, led by Apple’s over 3.0% drop. The reason could be traced from the Dow Jones Industrial Average’s (DJI30) corrective pullback following US Treasury Secretary Janet Yellen’s U-turn on rate signals.
Having initially backed the interest rate hike and dragged down the US equities, Yellen reversed her moves while saying, “not predicting or recommending” interest rate increase. Her comments helped the DJI30 to print mild gains but couldn’t save the market players as Nasdaq and S&P 500 closed on the negative side.
That said, DJI30 gains 0.06% or 19.8 points to close around 34,133. On the contrary, S&P 500 declined 0.67%, or 28 points, while Nasdaq became the day’s biggest loser with a 1.92% downside to flash one-month low before closing around 13,530.
Shares of Apple, Amazon, Microsoft and Alphabet all dropped with the first being the leader in the south-run as downbeat US trade figures and factory orders joined rate hike signals to weigh the technology shares.
Other than the risk and data factors, comments from the International Monetary Fund (IMF), backing the “Global minimum corporate tax rate” also weighed on the multinational companies and drowned the markets.
Alternatively, the coronavirus (COVID-19) woes battled upbeat vaccine developments and mixed earnings from the key drug manufacturers, like Pfizer, also troubled traders.
Amid these plays, US 10-year Treasury yields dropped 1.5 basis points (bps) while the US dollar index (DXY) gained 0.35% by the end of Tuesday’s North American trading.
Moving on, downbeat prints of US ISM Manufacturing PMI pushes investors to keep their eyes on the ISM Services PMI for April for immediate direction. Also important is the early signal for Friday’s job report, ADP Employment Change for April.
Read: US ISM Services PMI April Preview: Inflation readings remain key as recovery gains strength
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Further range bound should not be ruled out
AUD/USD managed to regain the smile and challenged the key 0.6500 hurdle on the back of the knee-jerk in the US Dollar and ahead of key data releases in Australia and the US labour market.
EUR/USD maintains the bearish tone
Despite Tuesday’s acceptable advance, EUR/USD is expected to remain under the microscope in light of political effervescence in France and upcoming key results in US fundamentals along with Chair Powell’s speech.
Gold keeps struggling for direction
Following Monday's retreat, Gold stabilizes and trades in a narrow band below $2,650. The benchmark 10-year US Treasury bond yield stays flat near 4.2% ahead of Fedspeak, making it difficult for XAU/USD to gather directional momentum.
Ethereum Price Forecast: Investors purchased $1.2 billion of ETH as key pattern suggest rally toward $4,868
Ethereum (ETH) is down 1% on Tuesday despite heavy accumulation across spot exchanges and investment products. The number one altcoin could rally to tackle its all-time high resistance of $4,868 if it maintains a rounded bottom patern and overcomes a key trendline resistance.
The fall of Barnier’s government would be bad news for the French economy
This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.