- US stock indices recover some ground after recording minimal losses on Wednesday.
- S&P Global PMIs disappointed expectations, dragging stocks lower.
- The Nasdaq Composite leads the declines, followed by the S&P 500 and the Dow Jones.
- USD recovers some ground, although US Treasury yields fall as traders back down on hawkish Fed.
US stocks opened higher and Wall Street started within known ranges, though S&P Global PMIs, where all three indices disappointed expectations, stocks swung back from daily highs but resumed the rally to the upside.
The S&P 500 has regained its composure, rising 0.53% to 3,777.04, although far from Wednesday’s high of around 3,800. For its part, the technology index, the Nasdaq 100, once again led the rises, gaining 0.90%, to 11,151.78, followed by the Dow Jones Industrial (DJIA), which rose 0.37%, to 30,595.05.
Drilling down into the broader market index, the biggest performers are consumer goods, up 1.60%, followed by utilities and healthcare, posting gains of 1.148% and 1.46%, respectively. In negative territory are the sectors related to raw materials, such as Energy, Materials and Industrials, which fell by 1.12%, 0.75% and 0.68% each.
The USD has recovered some ground and is approaching 104.374, up 0.18%. Meanwhile, US Treasury yields remain on the defensive, with the 10-year US Treasury yield falling 14 basis points, yielding 3,018%, retracing from weekly highs near 3,317. %.
On Thursday, US global PMIs disappointed expectations, showing that business activity in the manufacturing and services sector is expanding, but at a weaker pace, after falling to 52.4 from 57 (Mfg.) and to 51.6 from 53.4 (Utilities), with these latest readings in May. Meanwhile, US Federal Reserve Chairman Jerome Powell is speaking to the US Congress for the second day in a row.
At the time of this writing, Fed Governor Michelle Bowman stated that another rate hike of 75 basis points in July, followed by at least 50 basis points at subsequent meetings, would be desirable.
In the complex of raw materials, the benchmark US crude, WTI, fell 0.75%, trading at $105.47 BPD. At the same time, precious metals like gold (XAU/USD) are up 0.23%, trading at $1842.70 a troy ounce.
SP 500 Chart
Technical levels
Source: Fx Street
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