Stock market: Nasdaq at a peak, the Dow takes a break

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July 2, 2020
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July 7, 2020

Stock market: Nasdaq at a peak, the Dow takes a break

MARKET REVIEW – The major indices of the New York Stock Exchange had various fortunes on Wednesday, the Dow Jones Industrial Average pausing after a start to the week in a rush and the Nasdaq reaching a new record.

The indexes

The S&P 500 Composite Index gained 15 points, or 0.50%, to 3,115 points.

The Wall Street star Dow Jones fell 77 points, or 0.30%, to 25,734 points.

The technologically heavy Nasdaq advanced 95 points, or 0.95%, to 10,154 points.

Oil gained US $ 0.41, or 1.04%, to US $ 39.68.

Gold lost US $ 20, or 1.11%, to US $ 1,780.50.

 

The context

Market players saw a report earlier today from the business services firm ADP that 2.4 million private jobs were created in the United States in June.

This figure is lower than expected (+3.75 million) and down compared to the previous month after the upward revision of the data for May (+3.07 million against -2.7 million previously).

Meanwhile, manufacturing activity in the United States rebounded sharply in June after plunging due to the pandemic, according to the ISM Association’s purchasing managers’ index.

On the health front, the US pharmaceutical company Pfizer has published encouraging results from an early phase clinical trial on a coronavirus vaccine.

The title of the group rose by 3.18%.

In the minutes of its last monetary meeting, the Federal Reserve again suggested that the recovery of the US economy would take time.

“This is what has somewhat restrained the market,” notes Peter Cardillo of Spartan Capital Securities, who recalls that the surge in cases of coronavirus contamination in many American states is the main reason for concern for investors.

“We are seeing levels that are difficult to justify given the possible economic consequences,” says Chris Low of FHN Financial.

“But it is also complicated to bet against this market,” said the expert.

The day before, Wall Street had completed its best quarter in over two decades.

In the bond market, the 10-year rate on the US debt rose to 0.6742% around 4:20 p.m. against 0.6561% on Tuesday evening.