Nasdaq Hits Record But Stocks Show Weakness at the Close

By Christiana Sciaudone

Investing.com – The Nasdaq Composite closed at an all-time high on Tuesday as U.S. stocks rose on hopes of additional stimulus checks from Congress, and despite coronavirus cases surging in Florida and California. Gold rose to its highest level in eight years.

The Dow Jones Industrial Average rose 0.5%, or 26,155.89 points, theS&P 500 gained 0.5%, while the Nasdaq Composite rose 0.7%. All indexes pared earlier gains.

Treasury Secretary Steven Mnuchin said at a Bloomberg conference that a new round of coronavirus stimulus should pass Congress in July. In a statement, he also reiterated that the U.S.-China trade deal should be fine, further seeking to ease concerns after U.S. trade adviser Peter Navarro said the agreement was over on Fox News late Monday. Hours later, President Donald Trump said the deal was “fully intact.”

Large-cap tech stocks continued to dominate, led by Apple (NASDAQ:AAPL) riding high after having its price target boosted by three analysts and announcing its shift away from Intel (NASDAQ:INTC) to making its own chips.  

Analysts are also fawning over Nike (NYSE:NKE), up 2.5% to a record $101.97. The average price target reached $106.13 with the highest estimate at $130 and the lowest $83, according to Nasdaq. Nike is scheduled to report earnings on June 25.

Dr. Anthony S. Fauci, the U.S.’s top infectious disease expert, warned Congress that the country is facing a “disturbing surge” of coronavirus cases, specifically citing cases in Texas, Florida, and Arizona. Global cases passed 9 million. England is moving to loosen restrictions while European Union officials are considering barring U.S. travelers when it reopens borders on July 1, according to The New York Times.

Oil snapped a three-day rally on worries that U.S. stockpiles were headed for another record high, despite President Donald Trump’s assurance that his trade deal with China was still on.

New York-traded West Texas Intermediate, the benchmark for U.S. crude futures, settled down 36 cents, or 0.9%, at $40.37 per barrel, the first slide after three sessions that delivered a total of 6.3% in gains for the contract.

London-traded Brent, the global benchmark for oil, settled down 35 cents, or 0.8%, at $42.73. It rose 5.6% in the last three sessions. 

Gold futures were up 1% to $1,784.85, the highest since 2012.

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