US stocks were mixed, the Nasdaq and the S&P closed down

Release time：Jun 25, 2019 From：admin

US stocks closed mixed on Monday. The yield on the US dollar and US Treasury bonds fell. The market is still assessing the Fed's interest rate cuts and paying close attention to the G20 summit to be held this week.

At 16:00 on June 24th (Beijing time, June 25th, 04:00), the Dow rose 8.41 points, or 0.03%, to 26,727.54 points; the S&P 500 index fell 5.11 points, or 0.17%, to 2945.35. Point; the Nasdaq fell 26.01 points, or 0.32%, to 8005.70 points.

As of Monday's close, the Dow was about 100 points lower than its highest closing record of 26,828.39, which was created on October 3, 2018. Dow components such as Dow Chemical Company (DOW), Merck Group (MRK), United Technologies (UTX), Procter & Gamble (PG), Coca-Cola (KO), Johnson & Johnson (JNJ) and Boeing (BA) generally rose. Home Depot (HD) became the biggest loser in the Dow.

The geopolitical tensions have made US Treasury bonds sought after and government bond yields have fallen. US President Trump signed an executive order on Monday to impose further sanctions on Iran. US Secretary of State Mike Pampeo said he hopes to establish a global alliance against Tehran.

Affected by the above news, US 10-year bond yields fell by 4.5 basis points on Monday to 2.201%, the biggest one-day drop in three weeks. The 2-year US Treasury yield also fell by 4.5 basis points to 1.377%. The yield on the 30-year US Treasury fell 3.9 basis points to 2.552%.

German 10-year bond yields fell by 2.5 basis points to -0.31%. The 10-year bond yields of Italy and the United Kingdom have also declined.

The Fed’s policy statement issued this month has calmed investors’ nervousness. The Federal Reserve issued a monetary policy statement on Wednesday saying that the central bank is ready to lower interest rates in response to the global economic slowdown.

But traders are still worried that if the economic slowdown that forces the Fed to cut interest rates continues, corporate profits may be negatively affected.

Following last week's Fed resolution triggering a fierce global market reaction, this week's Fed Chairman Powell will speak on economic prospects and monetary policy. The market will focus on whether he will further reaffirm the dovish position at the June meeting.

In addition to Powell, New York Fed President Williams and St. Louis Fed President Brad and many other Fed officials will speak this week.

It is worth mentioning that in the first speech after the Federal Reserve resolution last week, many Fed officials have differences on how serious the decline in inflation is. A senior policymaker said that the Fed is “close to” its inflation target, but three others warned that the weak price rise constitutes a significant risk that the Fed may need to cut interest rates to deal with.

Dallas Fed President Rob Kaplan said on Monday that he hopes to see more evidence before deciding whether to support a rate cut.

International trade tensions remain the focus of the market. Investors are also paying attention to the upcoming G20 Japan Osaka Summit.