The market is cautious about the progress of President Trump's tax reduction plan and the uncertainty of the Federal Reserve's monetary policy, causing a comprehensive pullback in the U.S. stock market on Tuesday, which dragged down major U.S. stock indices.
- S&P 500 Index dropped 23.14 points (0.39%), ending a six-day winning streak
- Nasdaq Index fell 72.75 points (0.38%), closing at 19,142.71 points
- Dow Jones Industrial Average declined 114.83 points (0.27%), closing at 42,677.24 points
- Philadelphia Semiconductor Index slightly dropped 6.93 points, closing at 4,890.78 points
Tech giants that led the gains in the past week mostly declined yesterday: Nvidia fell 0.88%, AMD dropped 1.07%, Meta declined 0.52%, Apple dropped 0.92%, and Microsoft slid 0.15%.
U.S. Stock Decline and U.S. Treasury Yield Trends
Analysts point out that fiscal concerns from Trump's tax reduction plan and the Federal Reserve's unchanged interest rate policy are the main reasons for the stock market pullback.
Additionally, U.S. Treasury yields showed mixed movements on Tuesday, with the 2-year Treasury yield dropping 1.1 basis points to 3.969%, reaching its lowest level in over a week, while the 10-year Treasury yield closed at 4.479%, rising for the second consecutive trading day.
Bitcoin Rebounds Strongly, Approaching Historical High
In contrast to the stress in traditional financial markets, the cryptocurrency market performed brilliantly. Bitcoin (BTC) price briefly exceeded $107,000 in the early morning hours today, currently only about 2.5% away from its historical high of $109,588.
Data shows that Bitcoin spot ETF has been experiencing net inflows in the past two weeks, with a net inflow of $660 million on the 19th, marking the highest since early May, reflecting strong institutional fund allocation demand. A JPMorgan report also noted that retail investors have been actively buying U.S. stocks since April, including Bitcoin ETFs.
