Tuesday U.S. equities gave up early gains to close on negative territory as market sentiment was dampened by a top health care worker warning about reopening the economy. .
In a distant testimony to Congress, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said coronavirus was not yet under control, adding: “There is a real risk of triggering an outbreak that you may not be able to control and (…) could even put you back on the road to try to get financial recovery. “
The Dow Jones industrial average fell 457 points (-1.9%) to 23,764, the S&P 500 dropped 60 points (-2.1%) to 2,870, and the Nasdaq 100 lost 186 points (-2.0%) to 9,112.
Real estate (-4.25%), banks (-3.51%) and consumer goods and apparel (-3.22%) sectors lost the most.
Coty (COTY -9.4%), Albemarle (ALB -8.0%), Morgan Stanley (MS -3.5%), BlackRock (BLK -7.8%) and Cummins (CMI -5.1%) showed significant losses.
On the technical side, approx. 29.9% (29.8% in the previous session) of the S&P 500 index stocks above their 200-day moving average, and 64.9% (74.9% in the previous session) were above their 20-day moving average.
Regarding U.S. economic data, the consumer price index fell 0.8% year-on-month (as expected), the biggest fall since 2008. U.S. the government recorded a monthly budget deficit of $ 737.9 billion in April ($ 737.0 billion expected).
And the National Federation of Independent Business’s Small Business Optimism Index dropped to 90.9 in April (84.0 expected).
Later today, April Producer Price Index (-0.5% on expected month) is reported.
European stocks were mixed, with the Stoxx Europe 600 index adding 0.3%. Germany’s DAX was slightly changed, France’s CAC fell 0.4%, while the UK’s FTSE 100 rose 0.9%.
U.S. Treasury prices rose again, pushing the benchmark’s 10-year Treasury yield to 0.679% from 0.724% Monday.
The spot gold price got $ 6 to $ 1,701 per Ounce.
Saudi Arabia announced plans to cut oil production in June by another 1 million barrels a day to 7.5 million, the lowest level since 2002. Meanwhile, the U.S. The Energy Information Administration lowered its projected domestic oil production by 2020 to an average of 11.7 million barrels per year. Day, down 500,000 barrels a day from 2019. U.S. WTI crude oil futures (June) jumped 6.8% to $ 25.78 per share. Barrel.
On the forex front, ICE U.S. The dollar index fell 0.2% on the day to 100.00. U.S. President Donald Trump tweeted: “As long as other countries receive the benefits of negative prices, the United States should also accept the” GIFT “.”