Holiday Fever Hits Wall Street, but Is the Market Party Coming to an End? Dive into Today’s Markets Data for the Truth

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As holiday fever takes hold of Wall Street, investors are left questioning whether the market party is about to meet its end—uncover the truth by delving into today’s crucial markets data.

Global stock markets witnessed predominantly positive movement on Tuesday, buoyed by Australia’s central bank decision to maintain its key lending rate and Wall Street’s attainment of a 15-month high.

Several major international markets, including London, Shanghai, Paris, and Hong Kong, displayed notable advancements, while Tokyo experienced a slight decline. Notably, oil prices surged following the announcements by Saudi Arabia and Russia regarding extended oil production cuts aimed at bolstering prices.

On Monday, Wall Street’s prominent S&P 500 index observed a marginal increase of 0.1% ahead of an eagerly anticipated update on U.S. employment, which plays a crucial role in the Federal Reserve’s considerations for potential interest rate hikes.

During early trading, the FTSE 100 in London observed a fractional gain of less than 0.1%, settling at 7,530.05. 

Similarly, the CAC 40 in Paris rose 0.1% to 7,935.38, while the DAX in Frankfurt exhibited a modest 0.1% increase, closing at 16,098.39.

Independence Day Pause: U.S. Markets on Holiday, While Asia Reacts to Mixed Market Performance and Lingering Inflation Concerns

Notably, U.S. markets remained closed on Tuesday during the Independence Day holiday.

In Asian markets, the Shanghai Composite Index experienced a marginal rise of less than 0.1% to reach 3,245.34, while the Nikkei 225 in Tokyo witnessed a decline of 1%, settling at 33,422.52. Conversely, the Hang Seng in Hong Kong displayed a 0.4% advancement to 19,393.33.

The S&P-ASX 200 in Sydney recorded a 0.5% gain, closing at 7,279.00, following the Reserve Bank of Australia’s decision to maintain its benchmark lending rate at 4.1%. This decision marked the most significant market data point of the day for Australia. 

In a statement, RBA Governor Philip Lowe conveyed, “Australia’s inflation has surpassed its peak; however, it continues to be excessively high and will persist at such levels for an extended period. There may be a necessity for additional measures to tighten monetary policy.”

Meanwhile, the Kospi in Seoul observed a 0.4% decline, settling at 2,593.31, while India’s Sensex demonstrated a 0.6% increase, closing at 65,618.63. 

New Zealand and Bangkok Soar, Singapore and Jakarta Stumble, while Wall Street Climbs to New Heights

Among other notable market movements, New Zealand and Bangkok experienced gains, while Singapore and Jakarta registered declines.

On Monday, the Dow Jones Industrial Average observed a modest 0.1% increase, while the Nasdaq composite displayed a 0.2% gain.

Remarkably, the S&P 500 achieved its highest level since April 2022, with a cumulative gain of 16% this year, having risen in six out of the past seven weeks. Traders anticipate a brief economic downturn following U.S. and European rate hikes aimed at mitigating inflation but remain encouraged by robust U.S. hiring indicators.

According to the Institute for Supply Management’s monthly survey released Monday, U.S. manufacturing contracted for the eighth consecutive month in June.

The forthcoming government report on hiring and wages, scheduled for release on Friday, represents one of the last significant data points ahead of the Federal Reserve’s meeting next month to discuss interest rate policies.

Tesla Surges, Rivian Rides High, Apple Stumbles, and Energy Prices Ignite Excitement

Tesla Inc. emerged as a significant force propelling the S&P 500 upward, witnessing a remarkable 6.9% surge. The company reported an 83% surge in spring deliveries compared to the previous year, surpassing analysts expectations. Tesla is scheduled to release its earnings report on July 19.

Rivian Automotive, another prominent electric-vehicle manufacturer, experienced a substantial jump of 17.4% as it exceeded spring delivery forecasts.

Conversely, Apple Inc. declined by 0.8% following its historic achievement on Friday, becoming the first U.S. stock to surpass a total market value of $3 trillion.

The Federal Reserve has hinted that nearing the end of rate hikes would alleviate pressure on economic activities. Consequently, many on Wall Street anticipate a rate hike on July 26.

In energy markets, benchmark U.S. crude witnessed a gain of 60 cents, reaching $70.39 per barrel during electronic trading on the New York Mercantile Exchange. 

On Monday, the contract had declined by 85 cents, closing at $69.79. Meanwhile, Brent crude, the basis for international oil trading, experienced a rise of 59 cents, reaching $75.24 per barrel in London. It had retreated by 76 cents during the previous session, closing at $74.65.

The dollar observed a slight decline, settling at 144.48 yen compared to Monday’s 144.72 yen, while the euro experienced a marginal fall, reaching $1.0899 from $1.0913.

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