Investam-HK: U.S. three major Stocks rallied at the Market opening on Tuesday

Investors are not that scared about the growing number of coronavirus confirmed cases anymore, instead most of them are excited about the measures Federal Reserve are about to do to ease strain on the economy and help businesses which was hurt by the pandemic.

Most U.S. stock had closed their market price higher than analyst has expected. Possible reason is the unanticipated strong retail sales data report from last month May of this year. According to Census Bureau retail jumps up by 17.7% which really surprise many not to include car sale which rise by 12.4%.

Stocks
– The S&P ended up 1.9% at closing.
– Nasdaq Composite closed up by 1.8%
– The Dow (INDU) rallied more than 800 points at the opening before closing by 527 points, or 2%, ending above 26,000 points.

The benchmark rate on the yield of treasuries has hit a high of 0.77% as the market opens. Aside from announcing the surge on retail sales, Federal Reserve Chairman Jerome Powell divulge central bank’s move to buy corporate bonds.

Powell said in a statement in congress, ‘It’s out of an excess of caution to preserve these gains for market function by following through, and added, “I don’t see us wanting to run through the bond market like an elephant snuffing out price signals, things like that.”

Bonds
– The yield on the benchmark 10-year Treasury note gained 2 basis points to 0.727%
– The yield on the 30-year bond raised 6 basis points to 1.507%.
– The yield on the 2-year Treasuries is down by 4 basis points to 0.199%

Commodities
– West Texas Intermediate Crude advances by 3.39% to $38.38 a barrel.
– Brent Crude rose a bit by 3.12% to $40.96 per barrel.
– Gold weakened 0.2% to $1,733.40 an ounce.

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