Stock Market Today
US stock futures are trading lower with stock markets poised to end the first half of 2021 on a high note. The Dow and Nasdaq composite have both gained nearly 12% in the first six months, while the S & P 500 has gained 14%.
In the hopes of a quick economic recovery, investors have brushed off concerns about high inflation and continued to invest in stock markets, pushing indices to new highs. Walgreens Boots Alliance, Goldman Sachs, and American Express are the Dow Jones Industrial Average’s best performers, each rising by nearly 30%. JP Morgan, Chevron, and Microsoft have also posted significant gains, rising by nearly 20% each.
Historically speaking, whenever the stock indices have posted double-digit gains during the first six months of a year, the S & P 500 and the Dow have never posted an annual decline.
Stock Market
Stocks relating to construction companies rose in yesterday’s session after the S & P Case-Shiller national home price index released its National Home Price Index. The index has posted the highest reading over the last 30 years because of rock bottom borrowing rates and a lower supply of properties.
The US cannot afford a “boom and bust cycle,” according to the president of the Boston Fed, because it would jeopardise the country’s financial stability. The Dallas Federal Reserve President advised the central bank to reconsider its housing stimulus..
However, not everything is negative, as evidenced by yesterday’s release of consumer confidence data. The consumer confidence index increased to 127.3 in June, the highest level since the coronavirus pandemic began. Consumers are optimistic about the US economy’s prospects, thanks to an effective vaccination campaign that has helped reduce cases. The rise in the consumer index is a good sign for businesses because it indicates that operations are likely to quickly recover and return to growth.
The Dow Jones Industrial Average and the S & P 500 index each rose 0.03%.The Nasdaq, the tech-savvy index, jumped 0.19%, while the Russell 2000, the small-cap index, declined 0.58%.
The stock markets are unlikely to see large fluctuations as investors await the jobs report on Friday, which could shed some light on the economy’s future outlook and the direction that monetary policy can take.
Bitcoin
The king of cryptocurrencies has made a significant recovery from its recent slump as a result of higher crackdowns by financial regulators around the world. In contrast, the bulls have carried digital assets above their 20-day average. Crypto traders should keep a close eye on the notorious currency’s price chart as it approaches its 50 day SMA, a critical level that is currently near $38,221. The price increase demonstrates that investors are still very interested in and optimistic about the future of cryptocurrencies.
Forex
On Tuesday, the US dollar reached its highest level in seven days and experienced the steepest rise in fourteen days. The spread of the Delta coronavirus is affecting financial market sentiment at a time when concerns about a hawkish Fed are also on the rise. When there is a surge in uncertainty, investors tend to hold more US dollars as a safe haven asset.
Gold
Following a rise in the value of the US dollar, the price of gold fell yesterday to its lowest level since mid-April. A positive report on the state of the labour market in June could persuade the Fed’s hawks to hike interest rates sooner, which would most likely hurt gold.
Oil Demand
The OPEC+ meeting is set to take place on July 1st. The crucial meeting will provide traders with hints about the future direction of oil supply. Until now, the member countries have kept a close eye on the price changes caused by the agreed-upon production cuts. The constraints on supply of oil are expected to be eased as a result of the rise in Brent and WTI prices. The hike in prices is caused by a surge in demand following the projection of a quick economic recovery. Investors should pay close attention to changes in inventory data in order to detect early signs of a shift in demand.
Brent crude is currently trading at $75.07 per barrel, up 0.41%, while WTI crude in the United States is trading at $73.44 per barrel, up 0.64%.
Asian Stock Markets
The Nikkei 225 index in Japan rose 0.01% in morning trade, and the Shanghai Composite Index rose nearly 0.24%. As of 12:31 a.m. EST, the ASX 200 index was up 0.59%, and Seoul’s Kospi had risen 0.47%.
Economists predict that China’s growth will slow this year, as it’s pace is already faster than it was before the pandemic. Foreign demand for goods made in the country is likely to decline as countries recover from the pandemic and start competing for international orders.