Wall Street Wraps Up with Mixed Results in Quiet Session
On Tuesday, the U.S. stock market showed minimal activity, yet the Dow Jones Industrial Average marked its longest winning streak of the year.
This streak reflects renewed optimism driven by expectations of potential interest rate cuts by the U.S. Federal Reserve later this year.
Preliminary data from the New York Stock Exchange (NYSE) indicates that the Dow Jones Industrial Average rose +31.99 points, or +0.08%, to 38,884.26.
The broad-based S&P 500 Index edged up by +6.96 points, or +0.13%, closing at 5,187.70, while the Nasdaq Composite Index experienced a slight decline of -16.69 points, or -0.10%, ending the day at 16,332.56.
Among the "Magnificent Seven" tech giants, Tesla dropped by -3.8%, Microsoft decreased by -1%, Apple rose by -1%, Nvidia lost -1.7%, Alphabet (Google) gained +1.9%, Amazon added +0.03%, and Meta (formerly Facebook) increased by +0.6%.
With limited economic data, traders turned to earnings reports and comments from U.S. Federal Reserve officials for insight into future stock movements.
Despite beating expectations, Walt Disney Co. shares plunged -9.5% due to revenue falling short and a projected softening in its streaming business for the current quarter.
In other news, Tesla's stock declined as a federal regulator requested more information regarding its Autopilot system, which is linked to a recent recall.
Friday's cooler-than-expected jobs report suggested that the U.S. economy might maintain a delicate balance—solid enough to avert a severe recession yet not excessively strong to fuel high inflation.
Meanwhile, U.S. Federal Reserve Chair Jerome Powell indicated that the central bank leans more towards cutting its main interest rate than hiking it despite persistently high inflation readings throughout the year.
Upcoming potential catalysts include U.S. consumer price data and Walmart results, both slated for next week.
In the U.S. government bond markets, the yield on the 10-year Treasury, which influences mortgage rates and other economy-dictating loans, closed at 4.46%. Additionally, the policy-sensitive two-year yield, reflecting market expectations of future Fed moves, closed at 4.84%.
Bitcoin, the leading cryptocurrency, maintained its consolidation phase, trading between US$62,824.00 and US$64,361.00 before closing at US$62,968.00.
As the consolidation period continues, bullish investors are eyeing a move towards the US$78,000.00 to US$81,000.00 range.
However, breaking below the critical support level of US$56,000.00 could dampen bullish sentiment, prompting a reassessment of market direction and potentially leading to a larger bearish outcome.
Given the heightened volatility in the cryptocurrency market, it's essential to monitor price action closely and be prepared to adjust trading strategies in a timely manner.
Meanwhile, Ethereum, the second-largest blockchain in terms of cryptocurrency market capitalization, traded within a daily range of US$3,028.00 to US$3,128.00 before closing at US$3,048.00.
Precious metal prices were weaker, with spot gold closing at $2,314 per ounce and silver closing at $27.20.
In the energy markets, Brent crude, the global benchmark, slipped to $83.04, while the U.S. benchmark, West Texas Intermediate, settled at $78.02.
The U.S. Dollar Index (U.S. DXY), tracking the dollar against six major currencies, increased to 105.36.
Meanwhile, the Eurodollar was 1.0754, and the British pound finished at 1.2508. The Japanese yen ended at 154.56, while the Australian dollar was at 0.6596.
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