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The Dow Jones Industrial Average and Nasdaq Composite both crept up to new record highs on Tuesday, despite rising anxiety among some Wall Street strategists.
The Nasdaq ticked up as much as 0.22 per cent to 5,675.8, while the Dow Jones Industrial Average advanced 0.37 per cent to 20,126.1. Meanwhile, the more evenly balanced S&P 500 was up by 0.14 per cent to 2,295.8.
Industrial companies were leading the way higher on the day, with real estate and technology groups also posting modest gains. Meanwhile, energy shares fell for the second day in a row as the price of crude oil dropped.
West Texas Intermediate, the US marker, was recently down 1.5 per cent to $52.21 a barrel. The fall was driven by concerns that a sustained period of higher oil prices will encourage US drillers to pump oil more aggressively, counteracting some of the supply relief provided by the agreement between Opec nations and several other major exporters, including Russia.
At the same time, some market analysts pointed to a rise in geopolitical jitters.
“Worries about eurozone peripheral spreads and China keeping monetary conditions tight have had a negative effect on risk appetite,” said Hans Redeker, a currencies strategist at Morgan Stanley.
Mr Redeker pointed to Monday’s drop in Treasury yields, coupled with a strengthening in the safe-haven yen, as evidence of that notion. The risk-averse theme seemed to reverse course somewhat on Tuesday, with the dollar advancing against Japan’s currency and Treasury yields ticking higher.