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US shares continue their rout, losing between 0.26% and 0.56%, except for the heavy tech Nasdaq Composite, which pares some of its losses, up by 0.25%.
In terms of sector specifics, the leading gainers are Energy, up 1.9%, propelled by high oil prices, followed by Technology and Consumer Discretionary, each recording gains of 0.29% and 0.05%, respectively. Contrarily, Utilities, Consumer Staples, and Health are losing 3.04%, 1.68 %, and 1.2% each.
In the commodities complex, the US crude oil benchmark, WTI, is gaining 0.88%, trading at $122.00 BPD, while precious metals like gold (XAU/USD) are falling 0.99%, exchanging hands at $1813.45 a troy ounce, as US Treasury yields, keep rising to multi-year highs.
US Fed expectations of a larger rate increase weighed on sentiment, so, US equities fell. The S&P 500 and the Dow Jones Industrial Average are slipping 0.26% and 0.56% each, sitting at 3,739.23 and 30,345.10, respectively, at the time of writing. Meanwhile, the Nasdaq Composite is rising 0.25%, up at 10,836.09.
In the meantime, the US Dollar Index advances to a fresh 20-year high at around 105.433, gaining 0.22%, on Tuesday. US Treasury yields remain elevated. The 10-year benchmark note rate is at 3.441%, up to six basis points, reflecting traders’ expectations of a 75 bps rate hike.
Investors’ mood remains negative, weighed by a Wall Street Journal news revealing that US Fed officials might surprise the markets with a larger than expected 0.75% bps rate hike.
US economic data crossing the wires were mixed, led by the rise in the Producer Price Index, which showed that prices surged in May by 10.8% YoY, though lower than expected, indicating that it’s not slowing down, further cementing the Fed’s rate hike.
The S&P 500 and the Dow Jones recorded losses in a risk-off market mood. The Nasdaq Composite is recovering some ground and remains above the 10,000 figure.
