The US stock market was mixed on Monday, as the tech-oriented Nasdaq updated the record high, while the Dow and the S&P 500 closed in the red. Nasdaq was lifted by Facebook and Apple, though Microsoft and Google parent Alphabet capped the rally. Large cap growth stocks, which have been losing ground versus value stocks, rose 0.36%, while the latter fell 0.56%. Investors continue to monitor the accelerating number of COVID-19 cases. California reported a record of over 30,000 new coronavirus infections. The state required residents to stay at home.
Nasdaq added 0.45%, the S&P 500 fell 0.19%, and the Dow declined by 0.49%.
Energy was the worst-performing among the S&P 500’s 11 major sectors, falling by 2.44% amid declining crude prices. Still, the sector has surged about 30% so far this quarter, being the best performer during this period.
Investors are still waiting for the two parties to reach consensus on a new stimulus package, after months of debates. The Congress is likely to approve a one-week stopgap funding bill to extend the time for negotiations, as the deadline expires this Friday.
Meanwhile, Pfizer’s coronavirus vaccine might be approved by the FDA within the next few days. The company will roll out the first doses of vaccine immediately after approval for emergency use.
Dow Jones was dragged down by Intel, which fell over 3.8% on the news that Apple was working on a series of new Mac processors that perform better than Intel’s best processors. Intel used to get about 10% of revenue from Apple.
In Asia, stocks are also mixed in early trading on Tuesday, after Dow Jones and the S&P 500 broke a four-day winning streak.
At the time of writing, China’s Shanghai Composite is up 0.06% after opening lower, and the tech-oriented Shenzhen Component has added 0.19%.
China stocks have been under pressure amid deteriorating tensions between the US and China, as the White House is set to impose sanctions on more than a dozen of Chinese officials who allegedly took part in the disqualification of opposition lawmakers in Hong Kong.
Still, China’s stocks rose on the back of a strong recovery in foreign trade, with Chinese exports surging by the most since February 2018.
In individual corporate news, Jd Health International, Chinese e-commerce giant JD.com’s healthcare branch, made its debut on the Hong Kong Stock Exchange, with its $3.5 IPO being the biggest one that the exchange has seen year-to-date. The stock price rose about 50% after the opening bell.
Hong Kong’s Hang Seng Index is down 0.59%.
Japan’s Nikkei 225 closed 0.27% lower, while South Korea’s KOSPI has tumbled 1.53%. South Korea is experiencing a resurgence of the coronavirus.
In Australia, the S&P/ASX 200 closed 0.19% higher.
In the commodity market, oil prices have declined on Tuesday, as sentiment is damaged by a surging number of COVID cases and the introduction of new restrictions. WTI is down 0.57%, and Brent has lost 0.70%. Both brands declined by around 1% yesterday.
Gold continues to recover as investors are waiting for more stimulus from the US government. Futures on the metal are up 0.40% to $1,873. Last week, the metal broke below $1,800 for the first time since July, as the vaccine optimism supported an interest in risk assets.
In FX, the US dollar is recovering on the same stimulus expectations, but the American currency is still close to the lowest level in over 2 years. The USD Index is up 0.08% to 90.850. EUR/USD is still up 0.09% to 1.2115.
The British pound has lost over 0.20% against both the USD and the euro, as the UK and the EU still haven’t reached a consensus on the three contentious issues hindering a trade deal between the two. UK Prime Minister Boris Johnson will go to Brussels to meet European Commission President Ursula von der Leyen in person.
