Global Markets Stagnation: Stock Prices are Moving Horizontally

Signs of Stagnation in Global Markets

U.S. stocks traded sideways on Tuesday following a rally that pushed shares to all-time highs. The S&P 500 entered a period of pause after a 1% rise on Monday and closed flat. The index briefly declined around midday due to uncertainty regarding a possible meeting between Trump and China's Xi. However, most sectors of the index closed in the negative overall.

Big Tech Companies Grab Attention

Nvidia Corp., Alphabet Inc., and Broadcom Inc. were among the companies that saw the biggest declines in point terms within the S&P 500. On the other hand, General Motors recorded a 15% increase following annual growth forecasts that exceeded expectations in the automotive sector, while Ford Motor Co. rose by 4.8%.

Fluctuations in Nasdaq 100

The Nasdaq 100, which stood out with a 1.3% increase on Monday, closed slightly down on Tuesday. According to Barclays Plc, risk aversion tendencies have increased due to trade and credit concerns, while stock positions among global macro hedge funds and long-term strategies have reached their highest levels in the past year.

Technical Outlook in Markets

Craig Johnson of Piper Sandler stated, "The short-term technical outlook suggests that stocks may consolidate or pull back in the coming weeks. We see pullbacks as healthy and necessary."

Futures Indicators and Precious Metals

On the new trading day, U.S. futures indices are showing upward signals, while Europe is indicating downward movements. The Bloomberg Dollar Index, which rose 0.30% on Tuesday and increased selling pressure on gold and silver, is slightly down this morning. The wave of selling in precious metals has eased in quantity. The U.S. 10-year Treasury yield fell 2 basis points on Tuesday and is trading sideways in the new trading day.

Decline in Asian Markets

MSCI Asia Pacific Index declined by 0.5%. The weakness in Asian markets is prominently driven by sell-offs in precious metal shares from countries like Australia to Indonesia and China. Following Prime Minister Takaichi of Japan issuing instructions for an economic package to alleviate the impacts of inflation, the Nikkei closed down by 0.5%. The Japanese Yen gained 0.14% against the dollar.

Increase in Oil Market

Oil prices rose following data indicating that U.S. crude oil stocks have decreased for the first time in four weeks. Additionally, Trump emphasized that India would reduce its energy purchases from Russia.