One of Tesla’s electric cars crashed and killed two passengers while presumably riding without a driver. It was one of the biggest reasons technology stocks reduced the S&P 500. It seemed to be on the way to the largest falling for almost four weeks. Small-scales companies showed poor results: more than 80% of the shares in the Russell 2000 reduced. However, copper prices increased to a nine-year maximum subject to raised demand and perspectives for quicker inflation as global economies recover.
This week seems to be light in the economic calendar till Thursday, with reports about unemployment and home sales scheduled to be announced, among others. Solid economic indicators helped push shares to a new record last week in spite of anxieties about coronavirus expansion. Traders will wait for more proofs of the private sector’s rebound from the pandemic as the reporting season picks up steam. United Airlines Holdings Inc., International Business Machines Corp., and others will report after closing on Monday.
The managing director of trading and investing product at E*Trade Financial, Chris Larkin commented that we might be in a bit of a holding pattern due to the flow of earning reports from different industries this week until investors would reconcile themselves with any beats or misses on that front. When we are knocking around market maximums and traders strive to unfold value, the short-term volatility is considered normal.
Global shares are close to new records
Matt Maley, chief market strategist for Miller Tabak + Co, believes that the sharp Bitcoin falling over the weekend also impacts trading. He says that even a short-lived decrease of a sought-after position usually has a negative effect on the share market at a time when the greater market stands at an expensive level.
Some important events this week
On Tuesday, Apple is going to present its first product this year.
On Tuesday, the Reserve Bank of Australia publishes the record of its policy meeting.
On Wednesday, EIA releases its crude oil inventory summary.
On Thursday, the ECB decides on interest rates, followed by a briefing of President Christine Lagarde.
The U.S. information about new home sales is also expected.
The main market moves:
The S&P 500 dropped down 0.6% as of 1:46 p.m. New York time
The Nasdaq 100 missed 1%
The Dow Jones Industrial Average decreased 0.4%
The Russell 2000 Index declined 1.5%
The MSCI World index cut down 0.3%
The Bloomberg Dollar Spot Index dropped 0.4%
The euro increased 0.5% to 1.2038
The British pound grew 1.1% to 1.3988
The Japanese yen enhances 0.6% to 108.10 per dollar
The profitability on 10-year Treasuries gained two basis points to 1.596%
Germany’s 10-year yield increased three basis points to 0.235%
Britain’s 10-year yield changed a little at 0.755%
West Texas Intermediate crude boosted 0.5% to $63 a barrel
Gold futures missed 0.6% to $1,770 an ounce.