Stocks fluctuate in volatile session; dollar gains
Stocks resumed gains in a volatile session ahead of Fridays options expiration. Treasuries and the dollar rose. Commodities sank.
The S&P 500 rose, with technology and defensive industries such as consumer staples and utilities climbing. The Cboe Volatility Index was on track for its biggest weekly surge since January. An earlier equity slide was driven by anxiety over the withdrawal of Federal Reserve stimulus, the virus spread and global supply chains. Metals prices slumped as part of a selloff that extended to agriculture, oil and natural gas.
Investors are bracing for the withdrawal of unprecedented liquidity as the developed world looks to mass vaccinations to keep the recovery on track. However, the persistent spread of coronavirus and slowing China growth raise questions about whether the global economy can absorb the winding down of stimulus. For Lindsey Bell, chief investment strategist at Ally Invest, even when the Fed starts tapering, there's still going to be "a lot of money" in the market.
"Today might be finally the day when we're starting to buy the dip," said Bell. "But also, don't forget, it's summer and volumes are a lot lower. That adds more volatility to the marketplace."
Nvidia Corp., the largest U.S. chipmaker by market value, rallied after reporting a surge in earnings and giving predictions that exceeded even rosy Wall Street estimates. Robinhood Markets Inc. sank after warning cryptocurrency-driven trading that fueled quarterly revenue may quickly fade. Chinese stocks listed in the U.S. endured another day of selling after officials unleashed a fresh round of proposed regulations. Tencent Holdings Ltd. and Alibaba Group Holding Ltd. each tumbled more than 6%.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.1% as of 4 p.m. EDT
The Nasdaq 100 rose 0.5%
The Dow Jones industrial average fell 0.2%
The MSCI World index fell 0.7%
Currencies
The Bloomberg Dollar Spot Index rose 0.5%
The euro fell 0.3% to $1.1676
The British pound fell 0.9% to $1.3635
The Japanese yen was little changed at 109.79 per dollar
Bonds
The yield on 10-year Treasurys declined two basis points to 1.24%
Germany's 10-year yield was little changed at -0.49%
Britain's 10-year yield declined three basis points to 0.54%
Commodities
West Texas Intermediate crude fell 2.2% to $64.02 a barrel
Gold futures were little changed
