Global stocks experienced an upswing and U.S. bond yields declined on Tuesday as investors anticipated forthcoming economic data and a wave of corporate earnings reports, despite President Joe Biden's withdrawal from the reelection race. Tesla and Alphabet are set to initiate the quarterly earnings season for the tech giants known as the Magnificent Seven, providing insights into a sector that has been pivotal in recent market advances. The U.S. core personal consumption expenditures index, a key inflation gauge for the Federal Reserve, is scheduled for release on Friday. The yield on the benchmark U.S. 10-year notes decreased by 3.5 basis points to 4.225%.
"The market is currently in a phase where it demands tangible results from earnings," commented Wasif Latif, the chief investment officer at Sarmaya Partners. MSCI's global stock index increased by 0.22% to 818.63. On Wall Street, all major indices saw gains, led by consumer discretionary and financial stocks. The pan-European STOXX 600 index rose by 0.13%, buoyed by a rally in technology stocks. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan ended 0.32% higher at 567.02.
Latif further noted, "We've seen a robust increase so far this year, and much of the positive news, whether earnings-related or due to potential rate cuts, is already factored in." U.S. Vice President Kamala Harris is set to campaign in Wisconsin today, having secured the majority of delegates for the Democratic National Convention, thereby becoming the presumptive nominee for the party.
The Dow Jones Industrial Average climbed by 0.20% to 40,495.62, the S&P 500 advanced by 0.26% to 5,578.98, and the Nasdaq Composite rose by 0.42% to 18,082.47. The dollar showed overall strength, while the yen continued its ascent against the U.S. dollar for the second consecutive day. The dollar index, which compares the greenback to a basket of currencies, rose by 0.14% to 104.45, with the euro declining by 0.33% to $1.0853. The yen gained 0.64% against the greenback, trading at 155.99 per dollar.
Crude oil prices continued to decline for the third straight session, as concerns over demand overshadowed expectations of a Fed interest rate cut in September and supply risks from Canadian wildfires. Brent crude futures for September dropped by 1.8% to $80.92 a barrel, while U.S. West Texas Intermediate crude for September fell by 2.2% to $76.82 per barrel. Gold prices saw a slight increase, with spot gold rising by 0.29% to $2,404.61 an ounce. U.S. gold futures also gained, up by 0.43% to $2,402.40 an ounce. Bitcoin, which had previously risen on speculation that a potential Trump administration might adopt a lenient stance on cryptocurrency regulation, fell by 2.16% to $66,676.26.
