Stock market today
A mixed close for the US stock market today. All major US stock indices with the exception of the Nasdaq composite closed lower. Tech stocks outperformed and closed marginally higher. The closing numbers for the US stock market today are as follows:
S&P 500: 3,962.71,-6.23 (-0.16%)
Dow 30: 32,825.95,-127.51 (-0.39%)
Nasdaq: 13,471.57,+11.86 (+0.09%)
Russell 2000: 2,319.52,-40.65 (-1.72%)
Stock market news
“Stocks ended mixed on Tuesday, following a session in which the broader market notched new record highs, as traders digested a weaker than expected report on U.S. retail sales and looked ahead to a Federal Reserve policy meeting later this week.
The Nasdaq closed slightly positive. The Dow fell by more than 100 points, giving back some recent gains. A day earlier, both the Dow and S&P 500 reached new highs, bolstered by the signing of a new $1.9 trillion stimulus bill that’s poised to spur consumer spending and ignite economic growth. Most Americans are poised to receive $1,400 stimulus checks, which began arriving over the weekend, and Wall Street economists have already begun hiking their gross domestic product (GDP) estimates for the remainder of the year, amid expectations that the stimulus will unleash a consumer rebound. And while U.S. retail sales dipped by the most since April 2020 last month, the decline is likely to be a one-off, as additional stimulus and vaccine-enabled reopenings help stoke consumption.
Still, Washington’s aggressive spending spree, and ultra-accommodative monetary policy, has focused growing attention on runaway deficit spending — which is at least part of the reason why government borrowing costs have begun to spike, even as the Federal Reserve remains committed to fostering growth through lower yields and higher inflation.
The central bank will render its verdict on monetary policy on Wednesday, which is widely expected to confirm a bias for more easy policy.
Last week, the benchmark 10-year Treasury yield spiked to a pre-pandemic high around 1.6%, up about 50 basis points in a month. Another warning sign has emerged via Bitcoin (BTC-USD), where prices over the weekend topped $60,000, a new record high before paring those gains on Monday.
With large amounts of fiscal and monetary stimulus backstopping activity, economists at BlackRock are anticipating “a much stronger post-COVID economic restart than what we would expect in a normal recovery. The rapid upward adjustment in U.S. Treasury yields and more muted movement in inflation-adjusted yields make sense in this respect, and are still consistent with our new nominal theme” of higher prices and government liquidity, the firm noted.”