On Wednesday, U.S. stocks closed mixed, as worries over a second-wave coronavirus pandemic persisted. Authorities of Chinese capital city Beijing ordered the lockdown of residential communities following surging infections. In the U.S., the number of coronavirus cases in Arizona, Florida and Texas reached new highs. Meanwhile, a clinical trial in Britain showed that dexamethasone, an inexpensive and common, can help save critically-ill COVID-19 patients.
The Dow Jones Industrial Average fell 170 points (-0.7%) to 26119, and the S&P 500 declined 11 points (-0.4%) to 3113, while the Nasdaq 100 rose 33 points (+0.3%) to 9982.
Nasdaq 100 Index: Daily Chart
Souirce: GAIN Capital, TradingView
Semiconductors & Related Equipment (+0.78%), Retailing (+0.52%) and Media (+0.32%) sectors performed the best, while Energy (-3.28%), Banks (-2.69%) and Automobiles & Components (-1.97%) sectors lagged behind. H&R Block (HRB -9.48%), Norwegian Cruise Line (NCLH -8.40%), TripAdvisor Inc (TRIP -7.61%) and Royal Caribbean Cruises (RCL -7.15%) were among the biggest losers.
On the technical side, about 43.9% (41.3% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 71.6% (53.8% in the prior session) were trading above their 20-day moving average.
U.S. official data showed that Housing Starts rose to an annualized rate of 974,000 units in May (+1.100 million units expected).
Due later today are Initial Jobless Claims (a decrease to 1.290 million expected), Continuing Claims (a decline to 19.850 million expected), and the Conference Board Leading Index (+2.4% on month expected).
European stocks were firm, with the Stoxx Europe 600 Index rising 0.7%. Germany's DAX increased 0.5%, France's CAC advanced 0.9%, and the U.K.'s FTSE 100 was up 0.2%.
U.S. government bond prices stabilized, as the benchmark 10-year U.S. Treasury yield settled lower at 0.732%.
Spot gold closed flat at $1,725 an ounce.
Oil prices retreated after the U.S. Energy Information Administration reported crude-oil stockpiles added 1.2 million barrels last week to another record level. U.S. WTI crude oil futures (July) settled 1.1% lower at $37.96 a barrel.
On the forex front, the ICE U.S. Dollar Index was little changed at 97.07. Federal Reserve Bank of Cleveland President Loretta Mester said she forecasts a 6% decline in GDP this year with jobless at around 9%.
GBP/USD lost 0.2% to 1.2557. Official data showed that U.K. CPI grew 0.5% on year in May (as expected). Meanwhile, the Bank of England is expected to hold its benchmark rate at 0.10%, while asset purchase target is anticipated to raise to 745 billion pounds from 645 billion pounds.
EUR/USD slipped 0.2% to 1.1243. USD/JPY slid 0.3% to 106.97.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.