- Earnings reports from JPMorgan, Goldman, and LVMH
- Bitcoin falls from its all-time high following the launch of Coinbase.
Technology stocks dragged down US stocks from record highs. Treasury yields rose, whereas crude oil increased in price.
PayPal Holdings Inc. and Nvidia Corp. led declines in the S&P 500 Index’s information technology market, which had fluctuated for the majority of Wednesday’s trading session as investors weighed earnings from companies including some of the world’s largest banks. Federal Reserve Chairman Jerome Powell recently stated that economic growth is accelerating, but cautioned that risks associated with a possible Covid-19 outbreak remain.
“We’re going to see a lot of volatility,” TrueMark Investments President and Chief Executive Officer Mike Loukas said. “Volatility appears to be the secret, and when everything comes together, we end up with record highs.”
Elsewhere, Bitcoin and Ether, the second-largest digital token, both fell after Coinbase Global Inc.’s debut on the Nasdaq Composite.
With global equities still hovering near all-time highs, investors are searching for additional catalysts during earnings season. Markets have rallied on expectations of a strong profit turnaround, setting the bar high as earnings reporting begins. Across the board, investors are closely watching vaccine innovations for potential risks to the economic recovery, as well as increasing inflation.
“No one can dispute the magnitude of the fiscal stimulus elephant in the room,” Nela Richardson, ADP’s chief economist, said by phone. “Companies did not do this on their own; they received significant assistance from the Federal Reserve and the US government.”
The White House stated that despite a pause in Johnson & Johnson doses due to health concerns, the United States’ vaccination campaign remains on track. For the second day in a row, J&J shares fell, while rival Moderna Inc. increased.
This week’s noteworthy incidents include the following:
- On Wednesday, the US Federal Reserve will issue its Beige Book.
- The United States will release data on Thursday, including initial jobless claims, manufacturing development, and retail sales.
- Friday brings China’s economic growth, factory output, and retail sales figures.
There are some of the major financial market movements:
- As of 2:47 p.m. New York time, the S&P 500 Index dropped 0.2 percent, the most since March 30.
- The NASDAQ Composite Index fell 0.6 percent, the most since March 29.
- The Dow Jones Industrial Average increased by 0.4% to a record high;
- The MSCI World Index increased by 0.2% to a record high.
- The Bloomberg Dollar Spot Index remained relatively stable.
- The euro increased by 0.2 percent to $1.20;
- The British pound increased by 0.3 percent, the largest daily rise since April 5; and
- The Japanese yen remained relatively stable.
- The yield on 10-year Treasuries increased by two basis points to 1.634 percent.
- Germany’s 10-year yield increased by 3.3 basis points, the most since March 26.
- Britain’s 10-year yield increased by 2.6 basis points, the most since March 30.
- West Texas Intermediate crude gained 4.9 percent to its highest level since March 23
- Gold futures dropped 0.7 percent to $1,736/oz.