NEW YORK, Dec 27 (Reuters) – The S&P 500 and Nasdaq fell on Tuesday after the release of U.S. economic data at the start of a holiday week, while oil prices rose on demand hopes. China said would lift the COVID-19 quarantine rule for incoming travelers.
U.S. Treasury yields rose after data showed the preliminary goods trade deficit for November narrowed to $83.35 billion from $98.8 billion the previous month, while a separate report signaled continued struggles for the housing market as home prices fell under rising mortgage rates. .
while oil has made a profit The commodity had previously hit three-week highs as some US energy facilities shut down by winter storms restarted operations. of China The recent easing of COVID restrictions has raised hopes of a recovery in demand.
A rise in Treasury yields is putting pressure on growth stocks, including the interest-sensitive technology sector, according to Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
“There’s no one who believes in going in and buying right now,” said O’Rourke, who said the added pressure comes from the sharp drop in shares of electric car maker Tesla Inc. (TSLA.O)It was down about 8% at 1925 GMT.
Gene Goldman, chief investment officer at Cetera Investment Management, described Tuesday’s session as “insufficient” as investors await next week’s Fed meeting minutes and economic data such as the jobs report.
Dow Jones Industrial Average (.DJI) The S&P 500 rose 51.78 points, or 0.16%, to 33,255.71 (.SPX) The Nasdaq Composite lost 16.49 points, or 0.43%, to 3,828.33. (.IXIC) It fell 132.49 points or 1.26% to 10,365.37.
Pan-European STOXX 600 index (.STOXX) 0.13% and MSCI’s index of worldwide shares rose (.MIWD00000PUS) It decreased by 0.13%.
Markets in some regions, including London, Dublin, Hong Kong and Australia, remained closed after Christmas.
Emerging market stocks (.MSCIEF) It increased by 0.26%. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) Japan’s Nikkei rose by 0.53% (.N225) pink 0.16%.
While Cetera’s Goldman said China’s changing COVID policies would be “good news for the global economy down the road,” he noted renewed caution among people in China due to the current surge in COVID infections after China eased restrictions.
Benchmark 10-year notes rose 10.2 basis points to 3.849% from 3.747% late on Friday. The 30-year bond rose 11.7 bps to yield 3.939%. The 2-year note rose 7.7 bps to yield 4.3998%.
The dollar lost on Tuesday on news of COVID-19 in China, which boosted risk-linked currencies such as the Australian dollar.
The dollar index Measuring the exchange rate of the dollar against a basket of major currencies, the exchange rate of the euro increased by 0.12% to 1.0648 dollars.
The yen weakened 0.35% to 133.34 per dollar, while sterling was last trading at $1.2032, down 0.23% on the day.
In energy futures, US crude was up 0.68% at $80.10 a barrel recently, while Brent was up 1.07% on the day at $84.82.
Gold prices rosewhile steady US yields overshadow advances in non-yielding bullion.
Spot gold rose 1.0% to $1,816.20 an ounce. US gold futures rose 1.17% to $1,816.90 an ounce.
Reporting by Sinéad Carew in New York, Nell Mackenzie in London Additional reporting by Xie Yu and Ankur Banerjee Editing by Simon Cameron-Moore and Matthew Lewis
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