PinDuoDuo e-commerce platforms on smartphone

US stocks are staged for a mute opening on Tuesday after ending their trading session mixed. Nasdaq 100 futures were almost unchanged, gaining only 10 points. Futures contracts tied to the Dow Jones Industrial Average (DJIA) fell 14 points. S&P 500 futures were at a standstill.

US Market Outlook

The US JOLTs job openings for June came in higher than expected. According to data published by the US Bureau of Labor Statistics, the number of job openings increased 6.5% to a series high of 10.1 million in June. Hires rose 4.6% to 6.7 million in the same month.

The US Treasury yields bounced back on Tuesday before easing their rally. The yield on the benchmark 10-year Treasury note advanced to 1.325%. The yield on the 30-year Treasury bond rose to 1.964%.

Oil prices jumped on Tuesday after hitting a three-week low amid strict lockdown restrictions. However, the WTI crude oil prices are still consolidating below the $70 level. US West Texas Intermediate (WTI) crude futures jumped 2.14% to trade at $67.90 per barrel. Brent crude futures climbed 1.62% to $70.16 per barrel.

However, with the rising coronavirus cases in China, economists are still worried that the oil prices will be bearish. China recorded an uptick in the daily numbers of coronavirus infections on Monday. China has tightened Covid-19 measures to curb the spread of the highly contagious virus. However, this move could hold back the country’s economic growth.

Investors’ sentiment towards Chinese stocks has been dampened by the ongoing regulatory crackdown on technology and after-school tutoring. Being the world’s second-largest economy, any interruptions in the Chinese economy could hamper global economic growth.

The US key inflation data will be released later Wednesday. The Consumer Price Index (CPI) for July is expected to decline slightly. According to some Fed officials, the pace of the US economic recovery and a surge in inflation could initiate talks about hiking Fed’s interest rates.

Nasdaq 100 Movers

Pinduoduo was the best performer in the Nasdaq 100 premarket trade. The Chinese agricultural-based company gained more than 2.58% despite Beijing’s crackdown on technology sectors. The crackdown saw the net worth of tech’s wealthiest tycoons including Pinduoduo’s declined.

Moderna Inc gained 2.27% in its stock earnings. The pharmaceutical and biotechnology company announced that it would deliver less than half of its planned shipment of vaccines to South Korea in August due to production issues. The US is also planning to send Mexico vaccines from Moderna Inc and AstraZeneca Plc.

Tesla Inc was among the laggards in the Nasdaq 100 index. The electric vehicle manufacturer slipped 1.01%. The company announced that its local shipment for China-made cars slumped in July.

Peloton Interactive Inc also plunged in premarket trading. The American exercise equipment and media company lost more than 1.21% in its stock price.

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up for Our Newsletters

Get exclusive content in your inbox.

You May Also Like

Dow Jones Nosedives After Hawkish Fed Decision

The Dow Jones index retreated after weekly initial jobless claims data. The index reacted to the Fed’s hawkish tone towards the monetary policy.

Dow Jones Rally Pauses Ahead of Powell Testimony

US stocks set to open the markets mixed ahead of Powell’s testimony later in the day. GameStop recorded the most gains in pre-market trading.

Nikkei 225 Index Slides as Fed Decision Damp Cyclical Appeal

Japan’s Nikkei 225 index led the drags in the Asia Pacific stocks on Monday. The index hit its lowest level in four months.

ARKK Stock Price June Forecast: The Struggle Continues

The ARKK stock price rebounded in May after falling to a multi-month low. Is this the end of the sell-off?