- US equity benchmarks edged lower amid mixed catalysts.
- Downbeat data jostled with Fed policymakers’ efforts to convince markets of no reflation risk.
- Treasury yields remain pressured for fifth consecutive day, gold refreshes multi-day top.
Wall Street portrayed a sideways grind amid complex catalysts on Tuesday. Downbeat economics jostled with the US Federal Reserve (Fed) officials’ rejection of reflation fears. In doing so, the equity traders failed to cheer another bad day for the US dollar index (DXY) and the 10-year Treasury yields.
Despite the recent bounce off 89.53, DXY remained pressured for the second day in a row while also refreshing the lowest point since early January. On the other hand, the US Treasury yields a tapper fresh bottom of the month on breaking 1.60% level.
Soft prints of US CB Consumer Confidence Index and Chicago Fed National Activity Index couldn’t please bears the Fedspeak, comprising words from Vice Chair Richard Clarida, keeps rejecting tapering fears. The mixed momentum could drive markets towards gold that jumped the most in over a week to tease the $1,900 threshold.
Amid these plays, Dow Jones Industrial Average (DJI) lost 81.52 points, 0.24%, to close at 34,312.46 whereas the S&P 500 came in second with 0.21% loss, down 8.93 points, while closing around 4,188. Further, the Nasdaq struggled for a clear direction but ended the day in the red with 4.0 points of a downside, or 0.03%, to 13,657.17.
Shares of Boeing benefited from the new order news whereas technology stocks couldn’t extend the previous day’s run-up.
Moving on, a light calendar can keep markets focused on the Fedspeak and inflation theme for fresh impulse. It should, however, be noted that any surprises from the coronavirus (COVID-19) and/or vaccine news won’t be ignored as well.