Saturday, June 12, 2021 | 05:53 pm

US Stocks Close Mixed With Tech Lower As Traders Weigh Economic-Recovery Data

US Stocks Close Mixed With Tech Lower As Traders Weigh Economic-Recovery Data

US stocks close mixed Wednesday with technology leading the losses as traders weigh economic recovery data against inflationary concerns.

The US private sector saw hiring accelerate through April – growing by 742,000 last month – according to ADP’s monthly employment report, as widespread vaccination led the economy to further reopen.

The median estimate from economists surveyed by Bloomberg was for a gain of 873,000 payrolls. The most optimistic estimates pegged job growth at well over 1 million.

“The labor market continues an upward trend of acceleration and growth, posting the strongest reading since September 2020,” Nela Richardson, chief economist at ADP, said in a statement.

“US stocks are rising after solid economic data, calm in the bond market, and as the global economic recovery improves,” Edward Moya, senior market analyst at Oanda, said in a note.

He continued: “The next big catalyst for equities is that the US needs its allies to also win the fight against COVID and that will take time. The gains abroad are greater as the recovery potential in Europe far exceeds what is left for the US”.

President Biden also announced a new goal Tuesday to have 70% of adults in the US at least partially vaccinated by July. This means giving close to 100 million shots over the next 60 days, the president said.

Here’s where US indexes stood at the 4:00 p.m. ET close on Wednesday.

  • S&P 500: 4,167.59, up 0.07%
  • Dow Jones industrial average: 34,230.34, up 0.3% (97.31 points)
  • Nasdaq composite: 13,582.42, down 0.37%

Peloton Interactive plunged as much as 15% after announcing it will voluntarily recall two versions of its treadmills. The decision comes in cooperation with the US Consumer Product Safety Commission following reports of injuries and one death.

Shares of Moderna and Pfizer also slipped after the US said it will support a proposal to waive intellectual property protections for coronavirus vaccines.

“This is a global health crisis, and the extraordinary circumstances of the COVID-19 pandemic call for extraordinary measures,” US Trade Representative Katherine Tai said in a statement.

In cryptocurrencies, dogecoin continued its red-hot rally, rising more than 40% to a new all-time high near $0.70. Ether meanwhile is up 350% year to date – hitting a new high of $3,500 on Tuesday – far outpacing the 90% rise of bitcoin.

The 27-year-old co-creator of Ethereum, Vitalik Buterin, who currently holds 333,521 ETH, is now the world’s youngest crypto billionaire as the second-largest cryptocurrency surges to a $400 billion valuation. One analyst said ether will likely hit $40,000.

Oil prices snapped a two-day winning streak as investors pull back from the recent rally. West Texas Intermediate crude slipped 0.49%, to $65.37 per barrel. Brent crude, oil’s international benchmark, fell 0.23%, to $68.72 per barrel.

Gold climbed 0.35%, to $1,784.75 per ounce.

Lumber also topped $1,600 per thousand board feet for the first time ever this week as ongoing homebuilding push continues to drain lumber producers that are already lagging supply.

Stocks related to lumber soared in response, including Weyerhauser and West Fraser Timber.