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Current Futures: Dow -15.00, S&P -5.00, NASDAQ -4.50
U.S. markets declined during Tuesday’s cash session, trading in the red for the first time in sixth days. However, the declines are still relatively small, as better than expected results lifted some parts of the market.
During the U.S. session, the S&P futures fell 16 points from the intra-day high reached during the New-York open. However, the current downtrend may be just a technical bounce, since the S&P futures started plunging only after they tested the 955.00 area, which holds the pair since November 2008. Most likely, the market will require stronger momentum to move higher, something that may come over the next few trading sessions, TheLFB-Forex.com Trade Team noted.
During the U.S. session, Bernanke testified in front of the House Financial Services Committee about the latest developments in the Fed’s monetary policy. A quick overview of Bernanke’s speech showed that the Fed thinks that the recovery path will be longer, since interest rates are going to stay at their low levels for an extended period. As a note, similar claims came from the ECB and from the other Fed officials over the past few weeks, which pointed out that the economic activity is likely to stay sluggish for the period ahead. These assessments are likely to have a strong influence in the global markets, since the current rally began in early March only after Mr. Bernanke said the economy is recovering.
The Dow Jones Index added 5.60 points (0.06%) to 8,853.75, while the S&P 500 index slipped 3.63 points (0.38%) to 947.50
Treasuries advance for the second consecutive day on Tuesday, after Mr. Bernanke’s testimony. Yield on the 10-year note lost 13.2 basis points to 3.479%.
Crude oil for August delivery was recently trading at $64.80 per barrel, higher by $0.80.
Gold for August delivery was recently trading lower by $1.00 to $947.80.
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