Stock market news updates: Nasdaq fell 0.5%, Dow gained 0.6%
On Tuesday, stocks remained mixed, with tech stocks under more pressure.
The S&P 500 closed at insignificantly higher. The Nasdaq delayed as investors further shifted technology and growth stocks. Heavily weighted Dow in cyclical stocks gained more than 0.4% during afternoon trading while financial and energy shares outperformed.
Intermediate crude oil futures (U.S. West Texas) increased 2% after falling more than 1.1% earlier in the morning. The move occurred after the White House declared that it was planning to release a total of 55 million barrels of oil from SPR (the Strategic Petroleum Reserve). It happened with similar moves from Japan, China, India, the U.K., and South Korea to try and reduce increasing energy prices with extra supply. On Tuesday, Biden said that the reserve statements could not solve the issue of high gas costs overnight. However, he added that it could make a difference.
Shares of Zoom slipped even after the company released its quarterly revenue growth that seemed better than they expected. It also issued full-year guidance, while the usage of the company’s software slowed after reopening.
On Thursday, international companies such as Nordstrom, Autodesk, and The Gap will report quarterly results.
This week, the renomination of Jerome Powell to the top leadership position (Federal Reserve Chair) at the central bank grasped market attention. Many investors reacted to the possibility that the previously filed monetary policy framework might remain the same with Powell’s reappointment. That includes expectations for at least one interest rate hike to happen before the end of next year.
Grant Thornton chief economist, Diane Swonk, told Yahoo Finance Live that continuity at a period full of unusual change is undoubtedly good news. She added that now there are specific financial market conditions plus the fact of dealing with inflation. In her opinion, it is very challenging to deal with inflation without crashing the recovery. President Joe Biden also chose Lael Brainard (Fed Governor) for the Fed as Vice-Chair of the Board of Governors. Previously he was seen as a potential candidate to replace Powell for the Fed Chair position.
Stocks overview
7:30 a.m. ET: Stock futures getting lower
- S&P 500 futures: -1 point (-0.03%), to 4,678.76
- Dow futures: +21 points (+0.07%), to 35,592.10
- Nasdaq futures: -26.76 points (-0.15%) to 16,355.26
- Crude: -$0.43 (-0.56%) to $76.34 a barrel
- Gold: -$9.31 (-0.52%) to $1,797.01 per ounce
- 10-year Treasury: +2.7 bps to yield 1.652%
