Dollar gains for the second day on Afghanistan, Delta variant worries. Oil Price weighed down by Weak Asian Demand. Technology stocks, meanwhile, struggled to replicate their positive start to the week.
Technology stocks, meanwhile, struggled to replicate their positive start to the week, falling 0.9%, as megacap tech traded in the red.
Apple , Microsoft, Facebook, and Google-parent Alphabet were below the flat line.
Health care stocks shrugged off the broader market malaise, led by a 7% surge in Moderna (NASDAQ:MRNA).
The U.K. on Tuesday approved the use of the Moderna’s Covid-19 vaccine for 12- to 17-year-olds.
Other vaccine stocks including Pfizer, and Novavax were also higher on the day.
On the monetary policy front, Federal Reserve Chairman Jerome Powell largely stuck to his script in a town hall on Tuesday. Powell reiterated that the recovery in the labor market is far from complete and said that it wasn’t clear how a big an impact the Delta variant will have on the economy.
The Fed chief’s comments come ahead of the minutes from the Fed’s most recent meeting and the Jackson Hole symposium next week, when some expect there could be clearing signaling on tapering of monthly bond purchases.
Still, the Fed is likely to take a cautious approach rather than an aggressive approach to reducing its monthly bond purchases.
“If Powell does commit to a time on tapering at Jackson Hole, he could signal the end of the year or very beginning of next,” Williams said. “I think it’s going to be very slow, very deliberate, and will be very market driven; if the market has a taper tantrum, I think they’ll slow down.”
Dollar gains for second day on Afghanistan, Delta variant worries.
A: 1.1705 -0.0003 -0.02%
A: 1.3738 -0.0001 -0.01%
A: 109.60 +0.03 +0.03%
The dollar advanced for a second straight session on Tuesday, bolstered by safe-haven demand, as investors fretted about Afghanistan, a slowing Chinese economy, and the rapid spread of the Delta coronavirus variant which forced some lockdowns.
Oil Price weighed down by Weak Asian Demand
China, the world’s largest energy consumer, reported weaker-than-expected industrials and retail sales
Delta variant of the coronavirus had triggered pandemic restrictions in China.
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