“Red” is closing now Wall Street with all three major stock indexes paring gains in the early session as the market failed to recover losses from Monday’s widespread liquidation. The initial rise was led by the Japanese central bank’s dovish signal that it will no longer raise interest rates amid market turmoil.
THE Dow Jones decreased by 234.21 points or 0.60% to 38,763.45 points. THE S&P 500 fell 0.77% to 5,199.50 units, while Nasdaq recorded losses of 1.05% to 16,195.81 points. At the start of the session, the Dow rallied to 480.30 points and the S&P 500 rallied 1.73%. As a result, the Nasdaq rose more than 2% intra-sessionally.
Stocks were pressured by weak demand for the $42 billion issuance of government bonds, underscoring weakness in markets. Weaker-than-expected demand for US Treasuries signals that the recent rally may be losing momentum. Treasuries are also under pressure as 17 blue chip companies issued $31.8 billion worth of bonds, the highest amount of investment grade debt so far this year.
The main tech stocks also showed strong volatility: Nvidia and other big tech followed the initial rise in the main indexes to change course in the afternoon. Nvidia fell 5.1 percent, while Super Micro Computer sank more than 20 percent after the server maker reported results that fell short of expectations. Tesla lost 4.4% of its value, while Meta Platforms fell 1%.
The 10-year US Treasury yield continued its rise to 3.95%, returning to levels seen before last Friday’s weaker-than-expected jobs data fueled concerns. part of a slow economy.
Wall Street’s VIX fear index traded at 28.3 today, well below Monday’s 65, signaling investor fears have eased but remain elevated from earlier in the month.
“There are some signs that things have calmed down in recent days. However, the path is not known, and it is also questionable whether all those carrying yen trading positions have been liquidated in a combination of instability certainty about geopolitical developments in the Middle East”, says Charlie Ripley, strategist at Allianz Investment Management.
“Equities clearly remain weak. More signs are needed for the bulls in the market to move again. “Many investors still do not feel confident to buy, especially before the release of data on inflation in the US in July next week,” said Fawad Razakzada of City Index and Forex.com.
Strategists at JPMorgan Chase & Co warned that despite the correction, there is little evidence that stocks have entered oversold territory, as they did in October 2023.