The Dow Jones rose 396 points on Tuesday for a win of 1%, when investors were largely turned out of the Tech sector. This postponement favored the 30-company Dow Jones, which in December 2024 corresponds 1% discount on the all-time high. In the meantime, the S&P 500 fell by 0.11% and the Nasdaq fell by 0.83%.
Some of the tech giants noticed. Nvidia 3%closed; Microsoft 1.1%decreased; And Meta Ended the day of 2.6% below that it was opened.
Tesla Had the steepest decline and closed at $ 302 per share, 5.3% lower than at the beginning of the session, although part of this fall can be attributed to the managing director Elon Musks Renewed feud with President Donald Trump.
On Tuesday, the focus was on the pond after reports from investors who moved money to the continent. However, stocks in the European Union fell that day.
After a few turbulent days, the STOXX 600 fell by 0.2%, in which the index had several peaks and valleys. The German Dax spent the entire session in a negative film and closed 1%. The French CAC closed a little lower and four basis points for the day. In Great Britain there was a regional bright spot where the FTSE 100 rose by 0.3%
In the currency markets, the US dollar index (DXY) was essentially flat that day after it rose in the morning. On Tuesday, the DXY decreased by 0.1%and hovered at around $ 96.76. This comes after the US dollar has had the worst performance in the first half of a calendar year since 1973. Since the beginning of the year, the US dollar has dropped by 11%compared to a basket with similar currencies.
The persistent weakness in the dollar reflects the feeling of uncertainty that the economy has permeated in recent months. But the slide of the dollar was the rally of the euro. The euro has risen by almost 14% compared to the dollar compared to the dollar. On Tuesday, the euro rose up to $ 1.1832 in the morning before falling to USD 1.1765 in the afternoon.
The President of the European Central Bank, Christine Lagarde, described the exchange rate “A reflection of the strength of our economy” during the ECB forum in Sintra, Portugal on Tuesday.
“There was a clear appreciation in relation to the dollar,” she said in a committee with other central bankers, including the chairman of the Federal Reserve, Jerome Powell. “Depending on how you look at it, it is either a depreciation of the dollar or the appreciation of the euro, and it could be a bit of both.”
While the euro and the dollar move in opposite directions, investors have started to re -exchange their portfolios in the direction of European shares.
The combination of greater stability in Europe, the appreciation of the euro and the increased defense spending has compiled the European Union for investors into a more appealing goal than in recent years.
“In this case, we also consider the movement, the flow of capitals and the attractiveness of euro-deactivated assets, which is also an interesting phenomenon that we have been observing recently,” said Lagarde.
