The main headlines of Fox Business Flash are here. Check out what is clicking on FoxBusiness.com.
U.S. stock futures traded lower ahead of Tuesday’s Wall Street session after US investors were spurred on Monday by the Federal Reserve’s guarantee to support the economic recovery.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 32731.2 | +103.23 | + 0.32% |
| SP500 | S&P 500 | 3940.59 | +27.49 | + 0.70% |
| I: COMP | NASDAQ COMPOSITION INDEX | 13377.542201 | +162.31 | + 1.23% |
Overnight, the Wall Street S&P 500 benchmark rose 0.7% as big tech companies led the way up. Amazon, Apple and Microsoft advanced.
Fed Chairman Jerome Powell said that while the economy is improving, the recovery is “far from complete”. In testimony to Congress, he said the Fed “will continue to provide the economy with the support it needs for as long as necessary.”
RAILWAY STRIKE $ 25B INCORPORATION
Powell “kept the markets happy” by saying that “there was still a long way to go” before tighter monetary policy was justified, ING’s Robert Carnell said in a report.
Investors are teetering between optimism that coronavirus vaccines, which may allow business and travel to return to normal, and fears of higher inflation, after struggling economies have been flooded with credit and spending from government.
They were reassured by Powell’s previous comment that the Fed’s basic interest rate will be kept close to zero until 2023, even with inflation forecast to rise.
U.S. stock futures traded lower ahead of Tuesday’s Wall Street session after US investors were spurred on Monday by the Federal Reserve’s guarantee to support the economic recovery.
On Wall Street, the S&P 500 rose to 3,940.59. The Dow Jones Industrial Average advanced 0.3% to 32,731.20. The Nasdaq rose 1.2% to 13,377.54.
Amazon rose 1.2% and Apple 2.8%, while Microsoft rose 2.4%.
The shares were driven by an increase in bond prices, which reduced their yield, or the difference between their market price and the payment at maturity. An increase in yields has attracted investors out of higher-priced technology stocks.
The yield on the 10-year Treasury note fell to 1.69%, after trading up to 1.74% last week. The possibility of higher interest rates with rising yields has worried some investors about economic growth may slow down.
Also on Monday, Kansas City Southern jumped 11.1% to the biggest gain on the S&P 500, after a Canadian railroad announced it would buy the company for $ 25 billion.
The stock ended last week in the red, as an increase in bond yields caused sales in many parts of the market.
GET FOX BUSINESS ON THE MOVE BY CLICKING HERE
Bank shares fell. Lower yields potentially mean that banks will only be able to charge borrowers lower interest rates. The KBW Bank Index of the 24 largest banks fell by more than 2%.
The shares of the British pharmaceutical company AstraZeneca, traded in the United States, rose 4% after British and American health officials said their vaccine COVID-19 was safe and that blood clot reports were outweighed by the health benefits of the vaccine.
Meanwhile, Asian stock markets fell on Tuesday after Wall Street soared with tech stock gains and the US Federal Reserve’s guarantee of support for an economic recovery.
Shanghai, Tokyo, Hong Kong and Sydney all retreated.
The Shanghai Composite Index lost 1.2% to 3,402.27, while the Nikkei 225 in Tokyo opened higher, but fell 0.4% at noon to 29,059.91.
Hang Seng in Hong Kong fell 1.4% to 28,494.09. Chinese search engine operator Baidu Inc. rose 0.2% on its first trading day after the company went public on the Hong Kong stock exchange and raised $ 3.1 billion from the sale of shares.
The Kospi in Seoul fell 0.9% to 3,008.48 while Sydney’s S & P-ASX 200 lost 0.1% to 6,745.40.
India’s Sensex opened down 0.1% at 50,034.07. New Zealand and Singapore advanced, while Jakarta declined.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
In the energy markets, US reference oil lost 60 cents to $ 60.96 a barrel in e-commerce on the New York Mercantile Exchange. The contract rose 13 cents on Monday to $ 61.55. Brent oil, the price base for international oils, dropped 64 cents to $ 63.98 a barrel in London. It rose 9 cents the previous session, to $ 64.62 a barrel.
The dollar fell to 108.76 yen from Monday’s 108.80 yen. The euro declined to $ 1.1922 from $ 1.1942.