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Current Futures: Dow -92.00, S&P -10.50, NASDAQ -15.25
After almost three months of continuous gains, U.S. markets are posting the first substantial declines, which caused the three major U.S. indexes to break free from the range seen over the last two weeks of trading.
The S&P 500 has lost so far 25 points, making today’s decline the biggest in the last month of trading. However, overnight equity markets also posted significant declines, causing the MSCI World Index to decline 2.8%, the biggest one day of decline since mid-April. Moreover, with today’s decline, the S&P 500 is trading just above the support trend-line that connects the 04.01 and the 05.26 lows. TheLFB-Forex.com Trade Team notes that if the S&P 500 breaks any lower, the market may retrace some parts of the uptrend started in March.
Continuing the trend set overnight, commodity stocks posted the strongest declines, especially Alcoa which lost 6.50%. In the Dow Jones index, only one company posted gains on Monday, American Express, after a report issued by the company showed that uncollectible loans declined in May. In the S&P 500, only 12 members of the index advanced overnight, which is less than 3%, while the other 501-member companies declined. For now, every sector in the U.S. market is trading under the break-even line.
Overnight, the Japanese Nikkei lost 96.15 points (0.95%) to 10,039.67. The Australian S&P/Asx declined 30.50 points (0.75%) to 4,031.70. The U.K. Ftse declined 115.94 points (2.61%) to 4,326.01, while the German Dax lost 179.30 points (3.54%) to 4,889.94. The Dow Jones index fell 202.17 points (2.30%) to 8,597.09, while the S&P 500 slipped 24.53 points (2.59%) to 921.68
Crude oil for July delivery was recently trading at $70.05 per barrel, lower by $1.95.
Gold for July delivery was recently trading lower by $12.90 to $927.80.
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