- US equities marked another mixed trading day even as US Treasury yields remain pressured.
- Technology shares keep beating Nasdaq amid fears of global tax deal, T-Mobile couldn’t recall bulls.
- US data, Fed comments reject reflation fears but cautious sentiment ahead of Friday’s US NFP restricts market moves.
US share market remains indecisive despite a fresh record high of the Dow Jones Industrial Average (DJI30). The reason could be traced from Nasdaq’s downbeat performance and mixed data from the US.
Following its run-up to the new all-time peak of 34,331.20, DJI30 closed near 34,230, up 97.31 points or 0.29% by the end of Wednesday’s North American trading session. Further, S&P 500 followed the suit and gained 0.07% or 2.93 points. However, Nasdaq (NQ100) drops for the fifth consecutive day as technology companies remain pressured.
Semiconductors, FANG and cloud stocks could be cited behind Nasdaq’s latest declines. Alternatively, T-Mobile’s upbeat earnings, a fourth daily decline by the US 10-year Treasury yields and Fed policymaker’s rejection to rate hike fears battled the bears.
US ADP Employment Change, the early signal for Friday’s monthly jobs report, joined ISM Services PMI to repeat the recent trend of slightly weaker-than-expected headline figures and upbeat details.
Elsewhere, the coronavirus (COVID-19) woes escalate in Japan and Canada while chatters that US President Joe Biden is up for removing the requirement for patents of the covid vaccines also troubled market players. Furthermore, the pre-NFP cautious sentiment and fears of the West versus China tussles weigh on the risks as well.
While the aforementioned catalysts offered a mixed Wednesday, gold prices benefited from the US dollar’s weakness. However, WTI could neither cheer upbeat inventory report nor US dollar weakness while declining from a fresh two-month high.
Looking forward, a lack of major data/events could firm the pre-NFP woes. However, the Bank of England’s Super Thursday may please momentum traders if signaling any positive surprises. Furthermore, weekly Jobless Claims could offer an additional signal for tomorrow’s key employment report.