US stocks drifted on Tuesday, August 2, after US House Speaker Nancy Pelosi arrived in Taiwan raising geopolitical turmoil between US and China. The visit despite a warning from Beijing has raised concerns in the global market.
The S&P 500 fell 0.67 per cent to 4,091.19. The Dow Jones was down 1.23 per cent to 32,396.17. The NASDAQ Composite lost 0.16 per cent to 12,348.76, and the small-cap Russell 2000 fell 0.05 per cent to 1,882.45.
Additionally, comments from the Fed officials that the Fed may not stop raising the interest rates in the coming months also fuelled worries in the market. San Francisco Federal Reserve President Mary Daly reportedly said that the Federal Reserve may continue to increase interest rates to bring down inflation.
Charles Evans, Chicago Federal Reserve President, said that the central bank may slow down its pace of rate hikes while indicating that another hike of a three-quarter percentage might be on the table for September.
Meanwhile, the US job openings decreased by 5.4 per cent in June, the Labor Department reported on Tuesday. The decline indicated that the labor market might be easing due to reducing demands.
On Tuesday, nine of the 11 critical segments of the S&P 500 index stayed in the negative territory. The energy and utility sectors stayed in the green. Information technology and industrial segments were the laggards.
Shares of Uber Technologies, Inc. (UBER) added 19.13 per cent after the ride-hailing firm posted strong quarterly revenue in the latest quarter. Its revenue soared over 100 per cent in the quarter.
Pinterest Inc. (PINS) rose 11.53 per cent in intraday trading after Elliott Management confirmed that it was the biggest investor in the social media and image-sharing firm. In addition, Pinterest's CEO said that he would be focusing more on profits.
The construction machinery and equipment firm, Caterpillar Inc. (CAT) dropped by 5.57 per cent after it reported its quarterly earnings results that missed Wall Street estimates.
In the energy sector, Shell plc (SHEL) increased by 0.69 per cent, BP p.l.c (BP) rose 1.07 per cent, and Schlumberger Limited (SLB) added 0.80 per cent. Marathon Petroleum Corporation (MPC) and Valero Energy Corporation (VLO) soared 3.65 per cent and 2.11 per cent, respectively.
In technology stocks, Microsoft Corporation (MSFT) decreased by 1.15 per cent, ASML Holdings N.V. (ASML) lost 2.17 per cent, and Broadcom Inc. (AVGO) fell 0.96 per cent. Oracle Corporation (ORCL) and Intel Corporation (INTC) plummeted by 1.41 per cent and 2.57 per cent, respectively.
In the industrials sector, United Parcel Service, Inc. (UPS) declined 0.93 per cent, Union Pacific Corporation (UNP) slumped 2.02 per cent, and Honeywell International Inc. (HON) dropped by 1.49 per cent. Deere & Company (DE) and The Boeing Company (BA) slipped 1.47 per cent and 3.42 per cent, respectively.
Futures & Commodities
Gold futures were down 0.46 per cent to US$1,779.45 per ounce. Silver decreased by 1.96 per cent to US$19.962 per ounce, while copper fell 1.85 per cent to US$3.4768.
Brent oil futures decreased by 0.33 per cent to US$99.70 per barrel and WTI crude was down 0.10 per cent to US$93.80.
The 30-year Treasury bond yields were up 2.87 per cent to 3.009, while the 10-year bond yields rose 5.43 per cent to 2.747.
US Dollar Futures Index increased by 0.81% to US$106.190.