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Wall Street extended losses for the second straight day on Tuesday, June 28, as investors assessed the latest economic data that showed the US trade deficit has decreased further, and so has the consumer sentiment due to rising inflation.
The S&P 500 fell 2.01% to 3,821.55. The Dow Jones dropped 1.56% to 30,946.99. The NASDAQ Composite lost 2.98% to 11,181.54, and the small-cap Russell 2000 shed 1.86% to 1,738.84.
The Commerce Department said on Tuesday that the US trade deficit in goods decreased for the second consecutive month in May, shrinking 2.2% to US$104.3 billion.
Exports rose to US$176.6 billion, up by US$2 billion from the prior month, it said, noting that the reduction in trade deficit may have boosted the second-quarter GDP growth.
Meanwhile, a Reuters report, which cited an independent economic survey, noted that consumer confidence dropped considerably in June due to rising inflation and expectations that the economy could weaken further in the second half of 2022.
The market has been on a downslide throughout the first half, plagued by a host of negative macroeconomic forces. Besides inflation, trade and geopolitical uncertainties weighed heavily on the markets. Retail investors treaded cautiously amid the highs and lows in stocks.
The energy stocks were the top movers on the S&P 500 index on Tuesday. Ten of the 11 segments of the index stayed in the negative territory. The bottom movers were the information technology, consumer discretionary, and healthcare sectors.
Shares of Qualcomm Incorporated (QCOM) gained 4.21% in intraday trading after a Wall Street analyst said Apple faced issues with its in-house built iPhone 5G chips, indicating Qualcomm could remain its main chip supplier for its 2023 iPhones.
Occidental Petroleum Corporation (OXY) added 3.84% after Warren Buffett's Berkshire Hathaway Inc raised its stakes to 16% in the hydrocarbon exploration company.
Shares of Nike, Inc. (NKE) plummeted 6.76% after the footwear maker’s first-quarter revenue guidance missed Wall Street estimates. The company experienced major disruptions in its most profitable market, China, due to the pandemic.
In the energy sector, Exxon Mobil Corporation (XOM) increased by 2.77%, Chevron Corporation (CVX) gained 1.61%, and Shell plc (SHEL) jumped by 2.53%. PetroChina Company Limited (TR) and TotalEnergies SE (TTE) advanced 2.37% and 1.08%, respectively.
In technology stocks, Apple Inc. (AAPL) decreased by 2.98%, Microsoft Corporation (MSFT) fell 3.17%, and NVIDIA Corporation (NVDA) plunged 5.26%. ASML Holding N.v. (ASML) and Oracle Corporation (ORCL) slipped 3.47% and 2.60%, respectively.
In the consumer discretionary sector, Amazon.com, Inc. (AMZN) declined by 5.14%, Tesla, Inc. (TSLA) tumbled 5.00%, and The Home Depot, Inc. (HD) lost 4.44%. McDonald's Corporation (MCD) and Lowe's Companies, Inc. (LOW) plummeted by 1.70% and 5.16%, respectively.
In the crypto space, Bitcoin (BTC) and Ethereum (ETH) declined by 3.20% and 3.54%, respectively. The global crypto market cap tumbled 2.84% to US$912.84 billion at 4:25 pm ET on June 28.
Gold futures were down 0.17% to US$1,821.65 per ounce. Silver decreased by 1.65% to US$20.837 per ounce, while copper fell 0.10% to US$3.7622.
Brent oil futures increased by 2.66% to US$113.93 per barrel and WTI crude was up 2.25% to US$112.03.
The 30-year Treasury bond yields were down 0.71% to 3.281, while the 10-year bond yields fell 0.59% to 3.175.
US Dollar Futures Index increased by 0.56% to US$104.263.
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