Asia Morning: US Stocks Halt 3-Session Rally

Wall Street sign with a building in background
On Tuesday, U.S. stocks closed in the red halting a three-session rally.

The Dow Jones Industrial Average retreated 390 points (-1.6%) to 24206, the S&P 500 declined 31 points (-1.1%) to 2922, and the Nasdaq 100 was down 33 points (-0.4%) to 9298.


Source: GAIN Capital, TradingView


Banks (-3.21%), Energy (-2.89%) and Household & Personal Products (-2.59%) sectors lost the most.

Kohl's (KSS -7.65%), TechnipFMC PLC (FTI -6.81%), Hess Corp (HES -6.62%) and Macy’s Inc (M -6.46%) were top losers.

On the technical side, about 33.8% (26.2% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 76.0% (38.6% in the prior session) were above their 20-day moving average.

U.S. official data showed that Housing Starts fell to an annualized rate of 891,000 units in April (900,000 units expected).

In a video-conference hearing of the Senate Banking Committee, Federal Reserve Chairman Jerome Powell said the central bank would use its "full range of tools to support the economy". And Treasury Secretary Steven Mnuchin pointed out that his department would support the Fed's lending programs with extra cash.

Later today, the Federal Reserve will release minutes of its latest monetary-policy meeting.

European stocks consolidated gains made in the prior session, with the Stoxx Europe 600 Index slipping 0.6%. France's CAC lost 0.9% and the U.K.'s FTSE 100 dropped 0.8%, while Germany's DAX added 0.2%.

U.S. Treasury prices rebounded, as the benchmark 10-year Treasury yield declined to 0.714% from 0.741% Monday.

Spot gold price advanced 14 dollars (+0.8%) to $1,745 an ounce.

Oil prices remains buoyed, as U.S. WTI crude oil futures (June) gained 2.1% higher to $32.50 a barrel.

On the forex front, the ICE U.S. Dollar Index slipped 0.1% on day to 99.58. Federal Reserve Chairman reiterated during his testimony before the Senate that more fiscal support might be needed to support the economy, while the Fed is ready to use all of its tools.

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