On the evening of July 2nd, US stocks opened low on Tuesday, and some major average indexes gave up the gains from the previous trading day. Investors are paying attention to labor market data and Federal Reserve Chairman Powell's speech.
As of press time, the S&P 500 index and Dow Jones fell slightly, and the Nasdaq rose slightly.
US stocks closed higher on Monday, with the tech-heavy Nasdaq Composite Index rising 0.8% to a record high. The S&P 500 index rose 0.3%, and the Dow Jones rose slightly by 0.1%.
Investors are considering whether this year's strong start can continue into the second half of 2024. Although large technology stocks continue to outperform the market, some bearish market observers are worried that the leading stocks in US stocks are too narrow, which may indicate future volatility.
Kevin Gordon, senior investment strategist at Charles Schwab, said that the potential performance of most stocks in major indices is still at a healthy level.
Gordon said: "I think this may actually be the key to the second half of this year. If you can keep more than two-thirds of the members of the S&P and Nasdaq indices above their 200-day moving averages, I think this is still a relatively healthy condition, because we have withstood the weak part of the economic data and have a clearer understanding of the direction of the Fed, probably knowing the actual timing of the rate cut."
Federal Reserve Chairman Jerome Powell participated in the European Central Bank Forum policy panel meeting held at 9:30 am Eastern Time on Tuesday.
Powell will participate in the group discussion and has not prepared a speech to deliver. Other people involved in the panel discussion with Powell include European Central Bank President Christine Lagarde and Roberto Campos Neto, president of Brazil's central bank.
The market is also watching the prospects of the US presidential election.
Derek Halpenny, head of MUFG's global market research in Europe, the Middle East and Africa, said: "Investors are increasingly betting on Trump's prospects of winning. More fiscal stimulus and trade barriers will lead to inflation and may bring upward pressure on long-term yields. Yesterday's ruling by the US Constitutional Court that the president enjoys immunity when performing his 'official' duties will increase Trump's hope of winning on November 5."
After the first presidential debate last week weakened Biden's chances of re-election, Wall Street strategists, including those from Goldman Sachs, Morgan Stanley, and Barclays, are re-examining the impact of a Trump victory on the bond market. They urged clients to prepare for continued inflation and higher long-term yields. On the other hand, JPMorgan's strategists said that now is the time to profit from US Treasury bonds.
This week, the market is focusing on the US non-farm payroll data for June, which will be released on Friday.
Focus stocks
Large technology stocks rose and fell, with Tesla up more than 7%, super micro computers up more than 2%, and Nvidia down more than 1%.
$NVIDIA (NVDA.US)$Down more than 1%, will face French antitrust charges. It is reported that the French regulatory agency will sue Nvidia for antitrust. This will be the first law enforcement agency in the world to take antitrust action against the company. It is said that Nvidia may face a fine of up to $6.09 billion.
$Tesla (TSLA.US)$Up more than 7%, second quarter deliveries of 443956 vehicles were higher than expected. The company's wholesale sales volume in China for June is estimated to be 71,000 vehicles, a month-on-month decrease of 24.2%.
$Novo-Nordisk A/S (NVO.US)$Down more than 4%, US President Biden said that Novo Nordisk must lower the prices of Ozempic (injectable hypoglycemic drug) and Wegovy (injectable obesity drug).
Furniture retailer$Conn's (CONN.US)$Down more than 39%, the company may apply for bankruptcy protection according to reports.
Editor/Emily