On Tuesday, afternoon trading saw a rise in US equities due to gain in technology shares, even though retail shares were weighed down because of the disappointing margin forecast of Target Corp. Higher oil prices also saw energy shares go up. There was a 1.8% increase in Apple shares and this rise came despite news that by 2024, the company would have to change the charging port on its phones sold in Europe. This was after lawmakers and EU countries agreed that all mobile phones, cameras and tablets should have the same charging port. There was also a 1% gain recorded in the S&P 500 tech index.
But, there was a 3.7% drop recorded in the shares of retail Target Corp, as it announced that it would need to reduce its stock of discretionary items and offer more discounts. Trading remained choppy in the market, but indexes appeared to be making a recovery after steep losses in recent sessions. So far, there has been a 13% decline in the S&P 500 index this year. Market strategists said that the market had seen a good bounce recently and risk sentiment has improved, but there is still uncertainty, which has existed throughout the year.
They do believe that markets will eventually start moving higher, but this does not seem to be happening anytime soon because there are a number of fundamental issues that need to be resolved first. The news from Target is certainly not a good one for consumers. There was a 0.51% increase recorded in the Dow Jones Industrial Average, as it climbed to 33,084.09. Likewise, the S&P 500 saw gains of 0.65%, which was about 26.99 points, while a 0.7% increase was recorded in the Nasdaq Composite that took it to 12,145.98 points.
There was a 1.7% drop in the shares of Walmart Inc. and a 1.7% decline was also seen in the S&P retail index. According to market-watchers, the companies may have to face negative impacts in the short-term if they cut down inventories, but it could be helpful in reducing inflation. On Friday, the US inflation numbers are due and they are expected to show that there was a rise in prices in May. It should be noted that there was a decline in core consumer prices, which do not include volatile energy and food sectors.
A 9% gain was seen in Kohl’s Corp shares, after news hit that it was in talks of a potential sale with Franchise Group Inc. that put the value of the department store chain at about $8 billion. Both the NYSE and Nasdaq saw more advancing issues, as opposed to declining ones. There were 3 new highs in the S&P 500 in 52-weeks and about 30 lows. As for the Nasdaq composite, the highs and lows were 30 and 115. Investors are keeping an eye on meetings of central banks that are scheduled for this week and the next and the data about inflation that is due this week.
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