Abstract:On Monday, U.S. stock indices pulled back from their peak levels, with the Dow Jones Industrial Average decreasing by 274 points (-0.71%) to 38,380, the S&P 500 dropping 15 points (-0.32%) to 4,942, and the Nasdaq 100 declining 29 points (-0.17%) to 17,613.
Date: 2024.02.06 MHM European Time Analysis
On Monday, U.S. stock indices pulled back from their peak levels, with the Dow Jones Industrial Average decreasing by 274 points (-0.71%) to 38,380, the S&P 500 dropping 15 points (-0.32%) to 4,942, and the Nasdaq 100 declining 29 points (-0.17%) to 17,613.
Amid anticipations that the Federal Reserve might delay interest rate cuts, Treasury yields saw an increase, with the 10-year Treasury yield rising by 12.7 basis points to 4.158%.
The health care, technology, and energy sectors outshone the broader market, whereas the materials, utilities, and real estate sectors faced downturns.
Nvidia (NVDA) saw its shares increase by 4.79% to $693.32, achieving a third consecutive record closing. This came after Goldman Sachs uplifted its price target for Nvidia to $800.
Tesla (TSLA) shares dropped by 3.65% to $181.06, marking its lowest closing since May 2023.
McDonald's (MCD) shares fell by 3.73% as the company reported quarterly sales that fell short of forecasts.
The U.S. economic landscape showed improvement as indicated by the Institute for Supply Management (ISM) services purchasing managers index, which rose to 53.4 in January, surpassing expectations of 51.7.
European equity markets closed lower, with the DAX 40 decreasing by 0.08%, the CAC 40 by 0.03%, and the FTSE 100 by 0.04%.
During the Asian trading session, the AUD/USD pair advanced to 0.6505, rebounding from a low near 0.6467, following the Reserve Bank of Australia's decision to maintain its benchmark rate at 4.35%.
The USD/JPY pair remained steady at 148.60 amidst reports of a 2.5% annual decrease in Japan's household spending for December.
The EUR/USD pair stayed muted at 1.0745, while the GBP/USD pair experienced a slight recovery to 1.2545.
Gold prices continued to face downward pressure, standing at $2,024, and Bitcoin's value slightly increased to $42,840.
Fed Governor Christopher Waller's recent comments have highlighted a cautious stance towards adjusting interest rates, marking a significant moment for the financial markets.
In the forex market, stability was the theme for the U.S. dollar index, holding firm at 104.30. Minor fluctuations were observed across major currency pairs: the Euro slightly weakened against the dollar, closing at 1.0827
In the latest market wrap focusing on the foreign exchange sector, the U.S. dollar index showed minimal movement, holding at 104.31.
On Tuesday, due to February's US durable goods orders growth exceeding expectations and an optimistic economic growth outlook for the first quarter in the US, the US dollar index initially fell but then rose, briefly touching below the 104 mark before recovering during the US trading session, closing up 0.07% at 104.29.