Asia Morning: US Stocks Halt 3-Session Rally

On Tuesday, U.S. stocks closed in the red halting a three-session rally...

Trading floor 2

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.

More from Indices

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account