On Tuesday, US stocks closed lower, with the Dow down more than 1 per cent, as Walmart Inc, a US retail giant and Dow component, fell 10 per cent, the biggest drop since January 1988, accounting for about 70 per cent of the Dow's decline. coupled with new developments in the incident of US President Donald Trump's "communication with Russia", the performance of US stocks has been affected.
The Dow closed down 254 points, or 1.01%, at 24964 points, losing 50 antennas again, falling as much as 335 points, and ending a six-day rally. The S & P 2716 closed down 15:00 or 0.58%. The Nasdaq benefited technology stocks higher but less lower, closing at 7234 points, down 5 points or 0.07%. The VIX volatility index, commonly known as the panic index, was at 20.43, slightly above the average of 20, reflecting mild panic in the market.
Us stocks softened, while the ADR index of Hong Kong stocks rose slightly to close at 30998 points, up 124 points or 0.4 per cent. Large blue chips generally rose, with HSBC Holdings PLC rebounding to HK $81.41, up 0.46 yuan over Hong Kong's closing market; Tencent at 449.69 yuan, up 3.89 yuan over Hong Kong's closing market; China Mobile at 74.32 yuan, up 0.32 yuan over Hong Kong's closing market; and HKEx at 278.48 yuan, up 0.68 yuan over Hong Kong's closing market.
According to the APP of Zhitong Finance, the US Department of Justice issued a statement saying that an online working group has been set up to make it a priority to study issues related to intervention in the US election, and a report is expected to be submitted by the end of June. At the same time, a member of Trump's former campaign admitted lying, bringing the incident of "communication with Russia" into the spotlight again.
The US Treasury auctioned a record $51 billion in three-month and $45 billion in six-month short-term notes on Tuesday, while another $55 billion in four-week notes and $280in two-year Treasuries were auctioned, bringing the total value of government bonds to an one-week high of $179 billion. The 10-year bond interest rate fell to 2.88% after the bond auction, temporarily breaking the 3% warning line. Credit Suisse said that based on the experience of 1991-2014, perhaps the 10-year bond interest rate rose to 3.5 per cent is a concern, mainly because the debt interest rate eventually soared to 5-6 per cent, but as soon as it approached 3.5 per cent, the stock market return began to reverse.
In the afternoon, Morgan Stanley warned that the sharp fall in global stock markets in early February was only a prelude to the "main course" later in 2018, because according to the bank's cyclical model, developed countries have entered the end of the period of economic expansion. the signs are rising stock markets, rising inflation, tightening monetary policy, rising commodity prices and increased volatility, which is a very normal typical pattern. Investors should be aware that after March, the market may reassess the outlook.