Dow Today – Stocks near flat to higher; dollar touches lowest since late February
Stock indexes globally were flat to higher on Tuesday with technology shares recovering on Wall Street, while the U.S. dollar touched its lowest level since late February.
AT&T Inc (T.N) added to losses from Monday, when it said it would cut its dividend payout ratio.
The S&P 500 technology index (.SPLRCT) was up 0.2%.
Investors have been weighing whether rising inflationary pressure in the United States could force the Federal Reserve to reduce its support in order to prevent the world’s largest economy from overheating.
Fed Vice-Chair Richard Clarida on Monday pointed to the weak April jobs report as proof of weakness in the economy.
Several Fed policymakers are expected to speak this week and the U.S. central bank is due on Wednesday to release the minutes from its April policy meeting, which will be read closely for any indications about where monetary policy is headed this year.
“We’re seeing this dollar weakness against numerous pairs and the market is starting to believe the Fed that we’re going to have low interest rates a lot longer,” said Edward Moya, senior market analyst at OANDA in New York.
“That’s going to be bearish for the dollar. You’ll eventually see commodity-based currencies outperforming,” Moya said.
The dollar index
fell 0.31%, with the euro
up 0.41% to $1.2201. read more
The progress of COVID-19 vaccine deployment and easing of measures to contain the pandemic have lifted higher-risk currencies that stand to benefit most from economic revival.
On Wall Street, the Dow Jones Industrial Average (.DJI)
fell 76.61 points, or 0.22%, to 34,251.18, the S&P 500 (.SPX)
lost 5.04 points, or 0.12%, to 4,158.25 and the Nasdaq Composite (.IXIC)
added 57.71 points, or 0.43%, to 13,436.76.
The pan-European STOXX 600 index (.STOXX)
rose 0.17% and MSCI’s gauge of stocks across the globe (.MIWD00000PUS)
U.S. Treasury yields remained little changed, with the yield on 10-year Treasury notes up 0.5 basis point to 1.654%.
U.S. gold futures
gained 0.03% to $1,868.00 an ounce.
Brent crude oil hit $70 a barrel for the first time since March before trading down slightly. Brent crude was last down 0.1% at $69.36 a barrel, while U.S. West Texas Intermediate crude was down 0.4% at $66.01.
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