Markets in the United States closed on Monday in honor of Martin Luther King Day. On Tuesday morning, the Futures S&P 500 fell by 0.3%, and the Futures Nasdaq 100 decreased by 0.5%, even though TSLA shares offered a rise. The interest rate on the 10 -year treasury has increased by 7 points, essential to 3.58%. The cost of the futures on crude oil has risen slightly above 80 dollars per barrel, while natural gas prices decreased by 9%. Futures on copper also recorded a drop of over 1%.
Meanwhile, on Wednesday, the United States Department of Labor should announce the production index for production, a measure of inflation. With the expected increase of 6.8% compared to the previous year, the index should decrease by 0.1% from December. In addition, retail sales numbers should be reported for the same period.
Despite the resumption of Friday, the performance of the ten-year Treasury fell by 6 points to 3.51%. Investors presume that the Federal Reserve will raise the interest rate by a quarter point in February and March, after which they foresee that the central bank will maintain the rate at the current level. While treasure returns decrease and the economic situation in other countries improves, the dollar is weakened, giving rise to actions and raw materials.
Last week, the consumer price index in December revealed that the prices decreased by 0.1% compared to the previous month but were still 6.5% higher than the same month of the previous year.
So far in 2021, the Nasdaq Composite has been the index with the best services, increasing by 5.9% since investors invested in technological securities submitted in anticipation of a brighter future for growth securities. The S&P 500 and the Dow Jones Industrial Average have increased by 4.2% and 3.5%, respectively, since the year’s beginning.
Goldman Sachs has revealed a profit lower than the projections for the last three months of the year, bringing down the price of the shares by over 3%. The bank’s performance was hindered by the decrease in yields deriving from investigation banking and asset management. On the contrary, Morgan Stanley’s figures have exceeded expectations due to record income with asset management, thus increasing its 6%shares.
These results came after other big banks, such as JP Morgan and Citigroup, published contrasting figures for the quarter. The Chinese economic data of last night were better than expected. In the fourth quarter, the GDP grew by 2.8% annually, exceeding the 1.8% forecasts. The growth for the entire year was 3%, slightly above the projections.
December retail sales decreased by 1.8%, but it was much lower than the expected drop by 8.6%. Industrial production increased by 1.3%, exceeding the expected growth by 0.2%. The US share price lists closed contrasted on Tuesday: the S&P 500 lost 0.20%to 3,990.97, the Dow Jones dropped by 1.14% to 33,910.85, and Nasdaq made a +0.14% to 11,095.11.