Regionals banks led US stocks higher Tuesday while a loss in shares of Apple Inc. took the air out of a rally in technology stocks.
(Bloomberg) — Regionals banks led US stocks higher Tuesday while a loss in shares of Apple Inc. took the air out of a rally in technology stocks.
The S&P 500 added 0.2% as Apple shed an additional 0.6% on concern the steep price of its much-anticipated mixed-reality headset will crimp shipments. The biggest gainers Tuesday included Zions Bankcorp., Comerica Inc. and Keycorp.
The benchmark equities index is on the edge of a new bull market. However, the mood across global markets has been cautious with some questioning if markets have run up too fast on the hype for artificial intelligence.
“Near-term price action for Nasdaq and Big 7 stocks is overbought,” said John Roque at 22V Research, adding he “would not be a surprise to see some pullback follow. Even God rested on the 7th day.”
Treasuries fell as Federal Reserve Vice-Chair Richard H. Clarida said it was unlikely the US central bank will start cutting rates until 2024. Traders are increasingly betting the Fed will hold rates steady at its June meeting, while keeping the option for hikes later open.
The World Bank said in a report Tuesday the global economy is in a precarious situation as sharp interest-rate increases hit activity and stir vulnerabilities in lower-income countries.
“There are so many investors out there who are so negative,” said Sam Stovall, chief investment strategist at CFRA. Typically, stocks rise after a Fed pause, “implying that if we don’t eclipse or close above that 20% threshold beforehand that we probably would do so shortly thereafter.”
In commodities, oil gave up gains off news of Saudi Arabia’s supply cut, sending energy stocks including Chevron Corp. lower. Wheat surged after Ukraine said Russian forces blew up a giant dam in the country’s south. Gold was little changed.
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Elsewhere, the euro weakened and German bonds gained after the European Central Bank said euro-area consumer inflation expectations eased significantly in April.
Australia unexpectedly hiked on Tuesday and kept the door open to further increases, sparking a rally in the country’s currency.
And in Turkey, the lira dropped for an 11th day, on track for its longest run of losses in more than a year, amid speculation of less government intervention in markets.
Key events this week:
- China forex reserves, trade, Wednesday
- US trade, consumer credit, Wednesday
- Canada rate decision, Wednesday
- EIA crude oil inventory data, Wednesday
- Eurozone GDP, Thursday
- Rate decisions in India, Peru, Thursday
- Japan GDP, Thursday
- US wholesale inventories, initial jobless claims, Thursday
- China PPI, CPI, Friday
Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.2% as of 10:55 a.m. New York time
- The Nasdaq 100 was little changed
- The Dow Jones Industrial Average rose 0.1%
- The Stoxx Europe 600 rose 0.3%
- The MSCI World index was little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro fell 0.3% to $1.0686
- The British pound fell 0.2% to $1.2407
- The Japanese yen fell 0.2% to 139.83 per dollar
Cryptocurrencies
- Bitcoin rose 1.4% to $26,003.85
- Ether rose 1.7% to $1,836.52
Bonds
- The yield on 10-year Treasuries advanced three basis points to 3.71%
- Germany’s 10-year yield was little changed at 2.38%
- Britain’s 10-year yield advanced two basis points to 4.22%
Commodities
- West Texas Intermediate crude fell 0.4% to $71.88 a barrel
- Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Namitha Jagadeesh, Lynn Thomasson and David Watkins.
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