Tech stocks rally pushed S&P 500 and Nasdaq indices to new price records

The S&P 500 and Nasdaq indices reached new price highs on Monday due to the growth of technology stocks. Such companies as Facebook, Nvidia, Netflix, and Twitter were the growth leaders. Facebook's market capitalization exceeded $1 trillion for the first time. The second-quarter earnings season begins in the US, and investors expect a strong earnings season while interest rates remain low. But the Dow Jones index is a bit out of whack and is showing mixed dynamics.

European stock indices declined at the end of the trading day. The German DAX decreased by 0.34%, while the British FTSE 100 fell by 0.88%. The German carmaker Daimler AG fell the most. The growth leader was the Finnish telecommunications company, Nokia Corp. The company’s shares increased by 5.8%.

With the global economy recovering, the Organization of Petroleum Exporting Countries (OPEC+) expects oil shortage by the end of this year. The current plan of OPEC+ calls for a 2.1 million barrel per day increase in production by the end of July. OPEC+ will hold the next meeting on Thursday, where further supply increases will be on the agenda. If production stays at the same level, the global oil demand will exceed supply, leading to higher fuel prices.

Gold prices continue to trade in a price range. It is now worth keeping a close eye on US Treasury bond yields, which have an inverse correlation to gold. The fundamental picture indicates that the precious metals will rise shortly.

Asian stock market closed Monday's trading in the red zone amid poor manufacturing data from China and a rapidly deteriorating situation with the spread of a new strain of coronavirus. WHO officials say India's Delta strain is twice as infectious as the original strain found in Wuhan. Given the rate of the spread, the Delta variant could become the dominant coronavirus strain in the world.

Main market quotes:

S&P 500 (F) 4,290.61 +9.91 (+0.23%)

Dow Jones 34,283.27 -150.57 (-0.44%)

DAX 15,554.18 -53.79 (-0.34%)

FTSE 100 7,072.97 -63.10 (-0.88%)

USD Index 91.90 +0.05 (+0.05%)

Important events:
  • – Japan Unemployment Rate (m/m) at 02:30 (GMT+3);
  • – ECB President Christine Lagarde Speaks at 16:40 (GMT+3);
  • – US CB Consumer Confidence (m/m) at 17:00 (GMT+3).

by Justforex, 2021.06.29

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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