Asia Morning: US Stocks Halt 3-Session Rally

On Tuesday, U.S. stocks closed in the red halting a three-session rally...

Trading floor 2

On Tuesday, U.S. stocks closed in the red halting a three-session rally.

The Dow Jones Industrial Average retreated 390 points (-1.6%) to 24206, the S&P 500 declined 31 points (-1.1%) to 2922, and the Nasdaq 100 was down 33 points (-0.4%) to 9298.

Source: GAIN Capital, TradingView

Banks (-3.21%), Energy (-2.89%) and Household & Personal Products (-2.59%) sectors lost the most.

Kohl's (KSS -7.65%), TechnipFMC PLC (FTI -6.81%), Hess Corp (HES -6.62%) and Macy’s Inc (M -6.46%) were top losers.

On the technical side, about 33.8% (26.2% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 76.0% (38.6% in the prior session) were above their 20-day moving average.

U.S. official data showed that Housing Starts fell to an annualized rate of 891,000 units in April (900,000 units expected).

In a video-conference hearing of the Senate Banking Committee, Federal Reserve Chairman Jerome Powell said the central bank would use its "full range of tools to support the economy". And Treasury Secretary Steven Mnuchin pointed out that his department would support the Fed's lending programs with extra cash.

Later today, the Federal Reserve will release minutes of its latest monetary-policy meeting.

European stocks consolidated gains made in the prior session, with the Stoxx Europe 600 Index slipping 0.6%. France's CAC lost 0.9% and the U.K.'s FTSE 100 dropped 0.8%, while Germany's DAX added 0.2%.

U.S. Treasury prices rebounded, as the benchmark 10-year Treasury yield declined to 0.714% from 0.741% Monday.

Spot gold price advanced 14 dollars (+0.8%) to $1,745 an ounce.

Oil prices remains buoyed, as U.S. WTI crude oil futures (June) gained 2.1% higher to $32.50 a barrel.

On the forex front, the ICE U.S. Dollar Index slipped 0.1% on day to 99.58. Federal Reserve Chairman reiterated during his testimony before the Senate that more fiscal support might be needed to support the economy, while the Fed is ready to use all of its tools.

More from Indices

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.