NEW YORK (Reuters) – The S&P 500 and Nasdaq fell on Tuesday after US economic data kicked off a shorter holiday week, while oil prices rose on demand after China said it would get rid of the novel coronavirus. 19 quarantine rules for incoming travelers.
US Treasury yields rose after data showed that the advance trade deficit in goods for November narrowed to $83.35 billion from $98.8 billion in the previous month, while a separate report indicated continued struggles in the housing market as home prices fell amid rising foreclosure rates. real estate.
While oil pared gains as some US energy facilities closed due to winter storms began resuming, the commodity had earlier hit a three-week high as China’s latest easing of COVID restrictions spurred hopes of a recovery in demand.
The rise in Treasury yields has put pressure on growth stocks including the price-sensitive technology sector, according to Michael O’Rourke, chief market strategist at Jones Trading in Stamford, Connecticut.
“It’s that no one has the conviction to step in and buy at the moment,” O’Rourke said, adding that more pressure came from a sharp decline in shares of electric car maker Tesla. (TSLA.O)which was down about 8% at 1925 GMT.
Gene Goldman, chief investment officer at Cetera Investment Management, called Tuesday’s session “lackluster” as investors waited for next week’s Federal Reserve meeting minutes and economic data such as the jobs report.
Dow Jones Industrial Average (.DJI) The S&P 500 rose 51.78 points, or 0.16%, to 33,255.71. (.SPX) It lost 16.49 points, or 0.43%, to 3,828.33 points, the Nasdaq Composite. (nineteenth) It fell 132.49 points, or 1.26%, to 10,365.37 points.
Markets in some areas including London, Dublin, Hong Kong and Australia remained closed after the Christmas holidays.
emerging market stocks (MSCIEF) It increased by 0.26%. MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) It closed 0.53% higher, while Japan’s Nikkei closed (.N225) It increased by 0.16%.
While Cetera’s Goldman said changing China’s COVID policies would be “good news for the global economy down the road,” he did note renewed caution among people in China due to the current rise in COVID infections since China eased restrictions.
The benchmark 10-year note rose 10.2 basis points to 3.849%, from 3.747% late Friday. The 30-year note rose 11.7 basis points to 3.939%. The two-year note rose 7.7 basis points to 4.3998%.
The dollar pared losses on Tuesday due to news of the coronavirus in China, which also boosted risk-related currencies such as the Australian dollar.
The dollar index, which measures the greenback against a basket of major currencies, was flat, with the euro rising 0.12% to $1.0648.
The yen fell 0.35% to 133.34 per dollar, while the pound sterling last traded at 1.2032 dollars, down 0.23% on the day.
In energy futures, US crude recently rose 0.68% to $80.10 a barrel, and Brent crude reached $84.82, up 1.07% on the day.
Gold prices rose, while resilient US yields overshadowed the advance of non-yielding bullion.
Spot gold rose 1.0% to $1,816.20 an ounce. US gold futures rose 1.17% to $1,816.90 an ounce.
Additional reporting by Sinad Caro in New York and Neil Mackenzie in London Additional reporting by Zhi Yu and Ankur Banerjee Editing by Simon Cameron-Moore and Matthew Lewis
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