On Tuesday, low trading volume, a lull in economic news, and the lack of a catalyst to raise stocks higher sparked a sell-off by investors concerned that market upside is small.
Yellen said rates will likely rise as government spending ramps up and the economy responds with faster growth, comments that economists regarded as self-evident. In a subsequent interview, the former Federal Reserve Chair said she wasn’t predicting or recommending rate hikes.
The debate about whether government spending would lead to excessive inflation is taking place at a time when market valuations are nearing two-decade highs. Despite some astronomically high corporate profits, investors have been hesitant to extend rallies. Although the Fed has assured investors that interest rates will stay at current lows throughout the recovery, improving data has fueled fears that policymakers will tighten earlier than expected.
After slipping 1.5 percent at its low, the wide market index finished the session 0.7 percent lower at 4,164.66. The Nasdaq Composite fell 1.9 percent to 13,633.50, its lowest level since March, due to pressure on some of the world’s largest technology firms. The yield on 10-year Treasuries was at 1.59% on Tuesday
Apple, the world’s most valuable publicly traded stock, fell 3.5 percent. Alphabet, the parent company of Google, fell 1.6 percent, Facebook fell 1.3 percent, and Tesla, the electric car manufacturer, fell 1.7 percent. Nvidia and Intel both lost 3.3 percent and 0.6 percent, respectively, as investors punished the market’s chipmakers.
Due to good results in Dow Inc and Caterpillar, the Dow Jones Industrial Average ended the day in the green. After falling more than 300 points sometime on Tuesday, the 30-stock benchmark closed 19.8 points, or 0.1 percent, higher at 34,133.03.
Looking forward, the ADP jobs report for the United States is due today, while Chicago Fed President Charles Evans gives a virtual speech at a Bard College event on Wednesday. Loretta Mester, President of the Cleveland Federal Reserve, delivers a virtual address to the Boston Economic Club. Furthermore, the April U.S. employment report is released on Friday.
Nigerian stock market soars as UNITYBNK and JAPAULGOLD plummet
The All-Share Index increased by +0.29% to close at 39,312.74 from 39,198.75.
The Nigerian stock market maintained a bullish recovery as the trading session began this week. This surge was bolstered by gains made by UBN and AFRIPRUD amongst others. The All-Share Index increased by +0.29% to close at 39,312.74 from 39,198.75.
- The Nigerian stock exchange market value currently stands at N20.44 trillion. Its Year-to-Date (YTD) returns currently stand at -2.38%.
- The market breadth closed positive with the bulls as REGALINS led 28 Gainers and UNITYBNK topped the chart of 15 Losers showing a hint of consolation.
1. REGALINS up +9.68% to close at N0.34
2. ABCTRANS up +9.68% to close at N0.34
3. UBN up +9.26% to close at N5.90
4. LINKASSURE up +8.70% to close at N0.75
5. MBENEFIT up +8.11% to close at N0.40
1. UNITYBNK down -8.33% to close at N0.55
2. JAPAULGOLD down -6.67% to close at N0.56
3. NEIMETH down -6.04% to close at N1.71
4. FLOURMILL down -4.84% to close at N29.50
5. NAHCO down -4.55% to close at N2.10
The stock market maintained the recovery as Union bank and LINKASSURE made an appearance for the second consecutive time, pushing the NGX ASI upwards at the end of the trading session today.
- Market sentiments were bullish as the NGX ASI closed with 28 Gainers and 15 Losers.
- Nairametrics advises cautious buying in this era of growing uncertainties.
Dow hits all-time high as energy stocks surge
The DOW gained 7.5 points, or 0.02%, to open at 34785.27 Index points.
At the opening bell, the Dow Jones Industrial Index (DOW) hit an all-time high as the commodity and energy markets are bullish.
The DOW gained 7.5 points, or 0.02%, to open at 34785.27 index points. The S&P 500 fell 4.3 points, or 0.10%, to open at 4228.29, while the Nasdaq Composite dropped 64.6 points or 0.47% to open at 13687.595.
This represents an optimism that interest rates would remain lower for longer, while a surge in commodity prices lifted shares of miners, energy and steel companies.
More details soon…
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- FMDQ approves quotation of MTN’s Commercial Paper worth N73.5 billion.
- MTN Nigeria issues a 7-Year Series 1 bond worth N110 billion.
- Caverton Offshore Support Group reports profit after tax of N520 million in Q1 2021.
- Okomu Oil proposes dividend worth N6.7 billion for shareholders.
- Ardova Plc confirms appointment of Oladeinde Nelson-Cole as secretary.