Asian markets drop after Wall St record and Chinese trade growth


Shares rose Monday afternoon on Wall Street, continuing an uptrend that pushed major indexes to a series of record highs as investors mostly look at strong corporate earnings.

The S&P 500 was up 0.1% at 1:45 p.m. EST. The benchmark index comes out of five consecutive weekly gains. The Dow Jones Industrial Average rose 50 points, or 0.1%, to 36,378 and the Nasdaq rose 0.2%.

Each major index has seen a succession of several record closings over the past week.

Smaller company stocks also made strong gains and once again outperformed the rest of the market, indicating that investors are confident about economic growth. The Russell 2000 rose 0.3%. It also comes out of a record week.

The yield on the 10-year Treasury bill rose to 1.49% from 1.45% on Friday night.

Stocks were roughly split between winners and losers within the S&P 500. Banks, which rely on higher yields to charge more lucrative interest on loans, made solid gains. Citigroup advanced 2.1%.

Tech companies have also gained ground and helped offset losses elsewhere in the broader market. Advanced Micro Devices jumped 11.8% and was the biggest winner of the S&P 500 after announcing that Facebook’s parent company, Meta, opted to use AMD’s chips in its data centers. Chipmaker Nvidia rose 3.6%.

Caterpillar rose 3.5%, and industrials stocks have broadly gained ground in the first trading session since a $ 1 trillion infrastructure bill passed Congress on Friday night and awaits the signature of President Joe Biden. It also allayed concerns about the stalemate in Washington as a potential struggle to raise the debt ceiling looms, according to Jamie Cox, managing partner of Harris Financial Group.

“The markets had sort of come to the conclusion that the infrastructure was going to take longer,” he said. “But it seems that the impasse has been broken; it really reduces the chances that we have a Christmas loaded with fireworks. “

A mix of businesses that depend on direct consumer spending for goods and services has fallen, as have businesses that sell household products.

Tesla fell 2.9% after CEO Elon Musk announced he would sell 10% of his stake in the company based on the results of a poll he conducted on Twitter over the weekend.

Social networking firm Nextdoor Holdings jumped 30% on its market debut through a merger with a specialist acquisition company.

The latest round of corporate earnings is starting to run out of steam, but investors still have several bulletins from some big companies to consider. Health products and services company Cardinal Health will release financial results on Tuesday and entertainment giant Walt Disney will release results on Wednesday.

Wall Street will also receive several inflation updates this week. Rising inflation remains a major concern as businesses face higher raw material costs and supply chain issues, while consumers face higher prices. Investors are closely watching the impact of rising prices on consumer spending and the economic recovery, especially as the holiday shopping season is just around the corner.

The Labor Department will release its producer price index for October on Tuesday, which measures inflationary pressures before they reach consumers. The agency will release its consumer price index for October on Wednesday, which focuses on the impact of inflation on consumers.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

Leave A Reply

Your email address will not be published.