Tuesday 16 February 2021 10:30 PM
US stock markets closed mostly lower on Tuesday, while the US was in the grip of a cold snap that even froze the southern oil state of Texas. The technology Nasdaq fell due to declines in heavy companies such as Apple and Microsoft, which were associated with increased interest on government bonds.
The broad Standard & Poor’s 500 Index closed 0.1 percent lower at 3,932.59 points, and the Nasdaq lost 0.3 percent to 14,047.50 points. But the Dow Jones rose 0.2 percent to 31,522.75 points.
Rising bond yields and rising energy prices have fueled fears of a repeat of inflation. Most signs point to the growth of the US economy, which is good for companies and stocks. However, the tech sector is more sensitive to higher interest rates, according to several investors.
The yield on the ten-year US Treasury note rose to 1,298% from 1,199% on Friday. The higher yield means that less is being paid in the market for government bonds.
Investors have continued to watch how Joe Biden’s $ 1900 billion bailout is still in the near future. This is expected to give the US economy a significant boost. A bill will be on the table this week.
The number of coronavirus infections fell to the lowest number in four months on Monday. Moderna reports that 45 million vaccines have been delivered in the United States, of which more than 25 million have been given. 300 million doses should have been delivered by the end of July.
On Monday, Wall Street was still closed for President’s Day. New records were set in the stock market on Friday.
Earnings season also continues in the US. “The overall numbers presented are much better than expected,” said Charles Hepworth, market analyst at GAM Investments. Hepworth warned that the recovery is taking the shape of a K, with sectors doing very well, while other sectors remain under significant pressure.
From the US S & P500 Index, 70 percent of companies now provide numbers. Of those, 79 percent managed to exceed expectations, says strategic analyst Vincent Goffins at JP Morgan Asset Management.
The price of oil rose 1% to $ 60.09 in New York. In fact, the price of natural gas rose by more than 7 percent due to the cold winter weather, which stagnates the production and supply of energy in many places.
The EUR / USD is quoted at 1.2113. At the start of the European trading day, the coin pair was still trading at 1.2135.
Bitcoin rose above $ 50,000 for the first time earlier in the day.
The energy sector was the big gainer on Tuesday, after large parts of the United States were engulfed in freezing polar air. This impedes the transportation of crude oil and fuel. The price of natural gas has risen sharply.
“This polar cold is clearly increasing the demand for oil and heating in general. This is clearly something that needs to be watched,” said Carsten Brzyski of ING.
Apple closed 1.6% lower and Microsoft fell 0.5%, possibly due to higher interest rates.
The UK Competition and Market Regulatory Authority (CMA) fears that eBay’s sale of the advertising arm to Adevinta will reduce competition and has called for a solution. The eBay stock didn’t respond to the message and closed steady.
Nissan is not in talks with Apple to develop a self-driving electric vehicle. A Nissan spokesman told Reuters news agency on Sunday after speculation about possible cooperation. The stock fell 5 percent.
Palantir Technologies saw sales increase nearly in half in 2020, but is counting on less growth for 2021. This was evident on Tuesday from figures from the US software giant specializing in big data. There was also a sudden loss. The stock lost 13 percent.
Groupon comes after the market in numbers.