US stock index Dow Jones submits new records

US stock index Dow Jones submits new records

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Shares on US stock markets rise on Tuesday as technology companies with large market capitalization recover from their biggest two-day decline since December, CNBC reported.

The blue Dow Jones Industrial Average index rose 52 points to a new record, with Goldman Sachs and Apple contributing the most. Apple shares were also under pressure, at 3.6 percent, as the weakest Dow. On Friday, a media report had casted doubts about the technical competitiveness of the upcoming iPhone 8.

Analyst Abhey Lamba from the investment house Mizuho Securities, whose opinion in the market certainly counts, now provided his purchase recommendation for the Apple shares. Shareholders of General Electric (GE), on the other hand, enjoyed a strong increase of 4 percent. The US industrial group gets a new boss, John Flannery. Among investors, his predecessor, Jeffrey Immelt, was criticized, in particular, for the weak share price development in the recent past.

The broader S&P 500 recorded a growth of 0.24%, with the IT sector rising 1.1% and driving green fields. The shares of Nvidia, Alphabet and Tesla gave energy to the Nasdaq technology index. During both sessions on Friday and Monday, the Nasdaq declined by 2.31%.

At the Nasdaq technology market, the Nasdaq 100 selection index recovered by 0.57 percent to 5740.60 points. Since last Thursday, the index was down by as much as 4.3 percent. Investors were deeply insecure about whether some tech heavyweights after the previous rally are now overvalued.

Since the beginning of the year, the information technology sector in the S&P 500 has risen by 17.6%. For comparison, healthcare, which ranks second, recorded a 12.1% growth this year.

A survey of Bank of America Merrill Lynch, published Tuesday, showed that, according to 84% of fund managers, the US stock market is the most overvalued market.

“However, it is important to note that the last two days have shown little or no real signs of weakness, with S&P 500 and Dow Jones virtually unchanged,” says Mark Newton, Managing Partner at Newton Advisors.

Investors are also following the US Federal Reserve, which starts its two-day meeting today, and tomorrow it will probably announce an increase in interest rates by 25 basis points. Details are also expected of how the central bank will shrink its balance sheet.

In the macroeconomic sphere, output prices remained unchanged on a monthly basis in May.

Gold went down by 0.23% to $ 1,266.04 per troy ounce.

US light crude WTI fell 0.69% to 45.76 dollars a barrel, and European benchmark Brent recorded growth of 0.04% to 48.31 dollars per barrel.

One euro is exchanged for 1.1216 dollars, and the yen exchange rate is 110.01 yen per dollar.

The 10-year US bond yield is 2.211% and the 2-year bond yield is 1.363%.

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Zac Berry is presently a full time editor at Market Morning. He covers the M&As and follows live market commentary. Before joining Markets Morning, Zac Berry worked with a start-up, where he worked in the capacity of a Team Leader tracking company events and results. Born in the U.A.E, he spent most of his growing up years in Dubai. Currently, he resides in U.S. and is pursuing his charter in Accountancy.

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