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Global Markets Slide and Nasdaq takes IPO crown

Following strong rallies across a number of markets globally, indices took a turn yesterday. Mixed messages from indices in Asia were followed by a slip in those across Europe. In the US, where protests and demonstrations about racism still rage, major indices pulled back after a strong start to the week.

Other Top Stories:

  • Hedge funds wary in Hong Kong. A number of hedge funds may be looking to depart the city over concerns of incoming changes to national security legislation from China, the Financial Times reports. An advisor working with hedge funds in the city told the publication that “Hong Kong as we know it is dead”, adding: “The hedge fund community will move on to Singapore or elsewhere.”
  • Amazon eyes up self-driving cars. After a slow start, rumours that Amazon was looking to snap up autonomous car maker Zoox helped drive the retail giant’s share price up 5% so far in June to beat its all-time high. Commentators point to the increase in delivery efficiency, while highlighting the potential threat posed to the ride sharing market.
  • US stocks back up and running. The Nasdaq hit an all-time high on Monday after closing up 1.13%. The S&P also climbed into the green for the year (up 0.04% YTD through 8 June) while the Dow Jones Industrial Average climbed 1.7% at the start of the week, boosted by the likes of Boeing.
  • Cyclical stocks power gains. The S&P 500 is seeing gains from investors rotating out of safe havens like healthcare into cyclical stocks in manufacturing, energy and finance. The stocks, usually affected by wider economic shifts, currently seem unaffected by negative economic data. How will developments in the economy affect this rally?
  • Nasdaq takes IPO crown. The tech-centric index has outshone the New York Stock Exchange in terms of IPOs this year following a pandemic induced drop in activity. Companies listing on the Nasdaq have raised $12.2bn so far this year (to 5 June) compared to just $10.9bn raised on the NYSE, according to The Wall Street Journal and data from Dealogic.
  • S&P 500 overwhelmingly up. In the lead up to the S&P 500 erasing 2020 losses yesterday, a peculiar trend had emerged. According to Bloomberg, since the S&P 500 hit a bottom in March, every single one of its members has posted positive returns. However, some highlight the risk in the trend of all companies moving in the same direction, suggesting it could reverse when the rally falters.
  • Boeing regains altitude. The embattled plane maker has seen its stock rise amid broad positivity in the sector, as investors look upbeat on the future of air travel and the US economy. The stock is up 48% so far this month (through 9 June). It registered a 12.2% jump on Monday to $230.50, but followed by a 6.56% fall yesterday.
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