US stocks closed slightly lower on Tuesday, the Dow ended 6 consecutive gains

Release time：Jun 12, 2019 From：admin

In the early morning of the 12th Beijing time, US stocks closed slightly lower on Tuesday, and the Dow ended its previous six consecutive trading days. The outlook for the Fed’s monetary policy remains a concern.

At 16:00 on June 11th (Beijing time, June 12th, 04:00), the Dow fell 14.17 points, or 0.05%, to 260,48.51 points; the S&P 500 index fell 1.01 points, or 0.03%, to 2885.72 Point; the Nasdaq fell 0.6 points, or 0.01%, to 7822.57 points.

US stocks opened higher on Tuesday. The Dow once rose 185.99 points after the opening, but then the main stock index gradually narrowed and turned into a small decline in the afternoon.

Among the S&P 500 index, the industrial sector became the sector with the largest decline. Raytheon (177.62, -9.71, -5.11%) the company (RTN) closed down 5.1%. The Dow component joint venture company (UTX) closed down 3.9%.

Willie Delwiche, brokerage firm Baird Investment Strategy, said: "At this stage, the stock market failed to break through the new high and was considered negative. Just a week and a half in June, but the stock market has gradually lost momentum. We see the S&P 500 index Many constituent stocks have hit record highs again. Some people are therefore expecting the S&P 500 to test the high levels created in April this year."

Delwiche said: "The potential risk lies in market sentiment. In May, market sentiment was extremely pessimistic. Now, the stock market rebounded strongly in early June. We see pessimism replaced by optimism. But if market sentiment fluctuates, it also It will become a headwind that will hinder the stock market from continuing to rise."

US Treasury prices fell on Tuesday and yields climbed. US 2-year government bond yields rose by two basis points to 1.93%. The yield on 10-year government bonds climbed two basis points to 2.17%.

The market is still concerned about the prospects of the Fed's monetary policy. The expectation that the United States will cut interest rates as early as next week is heating up. A number of Fed officials, including Chairman Powell, have hinted that they are open to monetary easing. The Fed will hold its next monetary policy meeting on June 18-19.

Bank of America economists pointed out that as the Fed apparently "interfered with uncertainty and market pricing," the 10-year bond yield at the end of 2019 is expected to be lowered from 2.6% to 2%. Bank of America economists expect the Fed to cut interest rates by 75 basis points by the beginning of next year.

The G20 summit will be held from June 28th to 29th. Caleb Silsby, chief portfolio manager at Whittier Trust, said: "Before the G20 summit, some fluctuations are expected in the market."

According to the economic data, the National Association of Independent Small Businesses reported that the US Small Business Confidence Index rose by 1.5 points in May to 105 points. Of the six sub-indices, three have not changed and one has declined.

According to data released by the US Department of Commerce, the US production price index (PPI) increased by 0.1% in May, 0.1% expected, and the previous value was 0.2%. May PPI increased by 1.8% year-on-year, with an expected 2.0% and a previous value of 2.2%.

PPI is an important indicator of inflationary pressures. The inflation rate is one of the two key economic data that the Fed has adjusted for monetary policy.

In terms of the Brexit progress, the UK will hold its first Conservative Party leader's vote on Thursday, and the campaign for Teresa May's successor will be heated up.