Wall Street Close: A mixed end to the turbulent quarter

• US equities closed mixed upbeat data joined covid fears and pre-NFP caution.
• S&P 500 refreshed record top but Nasdaq eased, DJI posted mild gains.
• US ADP Employment Change came in better-than-expected for June, Fedspeak sounds hawkish.
• US ISM Manufacturing PMI, risk headlines will be crucial to watch ahead of NFP.

US shares posted a mixed end to the first half of 2021 as hawkish Fed and upbeat data jostles the coronavirus (COVID-19) woes. The risk barometers were also struggling ahead of Friday’s Non-farm Payrolls and quarter-end positioning. Also affecting the markets is the Biden administration’s push for special regulations on the corporate giants.

Read: Forex Today: US dollar prints a fresh cycle high, ends its best month in 4 1/2 years

That said, the Dow Jones Industrial Average (DJI) added 0.61%, or 210 points, to 34,502 whereas S&P 500 refreshed an all-time high of 4,302 before closing the day around 4,300. However, Nasdaq inched lower, down 0.17% or 24.4 points to 14,504, to mark a pullback from the record top registered the previous day.

It’s worth noting that the US dollar index (DXY) posted the heaviest monthly gains since November 2016 whereas gold marked the alternative performance, dropping the most in 4.5 years, during June.

Thailand, Indonesia, Malaysia and Australia are some of the key Asia-Pacific nations that recently struggle with the covid variant amid slow vaccinations. Additionally, the UK is also not out of the woods of the Delta strain of the coronavirus.

US ADP Employment Change rose past 600K forecast to 692K but lagged behind the downwardly revised 886K. Further, the Chicago PMI dropped below forecast and prior to 66.1 in June whereas Pending Home Sales rose past -0.8% expected and -4.4% previous readouts to +8.0% in May.

In contrast to the mostly upbeat data, comments from Dallas Fed President Robert Kaplan backing a sooner tapering weighed on the US equity benchmarks. Additionally, Wall Street Journal (WSJ) came out with the piece suggesting US President Joe Biden’s push for tough regulations for the big companies, which in turn weighed on the technology shares.

Amid these plays, Intellia Therapeutics marked another record top, this time backed by the news that the company expects $600 million the recent share offer, before stepping back with 7.0% daily gains at the close. Further, Bed Bath & Beyond also gained, up 11%, even as the firm posted mixed fiscal first-quarter results with profit missing estimates.

Having witnessed upbeat signals for Friday’s US Nonfarm Payrolls (NFP), investors will keep their eyes on today’s US ISM Manufacturing PMI reading for further clarification. Also important will be the coronavirus (COVID-19) updates and Fedspeak, not to forget weekly Jobless Claims.

Read: US ISM Manufacturing June Preview: Expansion to continue but how severe is the labor shortage?