Some weakness. Stocks in the United States opened lower, following global markets in the red. This comes on the heels of a strong run, with the Nasdaq on an eight-day winning streak. Concerns over spreading COVID-19 cases and attention to US-European Union (EU) trade are putting a damper on things.
New tariffs? The Trump administration is considering adding $3.1 billion of new tariffs on exports from France, Germany, Spain, and the United Kingdom. This appears to be in retaliation, as the EU is moving forward with a regional digital services tax, despite strong US reservations. Issues with trade have calmed down during COVID-19, but if they heat up again, it could add another layer of worry.
Gold and tech, strange bedfellows. Technology stocks continue to make new highs, with the Nasdaq up eight days in a row, the longest winning streak since 11 in a row in late 2019. Technology has been an area investors have rushed to during the crisis, as tech earnings and growth have remained relatively strong. Meanwhile, on Tuesday gold closed at its highest level since 2012 over worries about higher inflation and an economic slowdown. You wouldn’t expect these two areas to lead, but would you expect anything less from 2020?
Why did God create economists? Find out in the new Street View video, available in today’s LPL Research blog.
COVID-19 news. Confirmed new US cases rose 46.5% week over week on Tuesday to nearly 35,000 as three states—Arizona, Texas, and California—reported record new daily cases. Hospitalizations nationwide rose 5%, the biggest increase since mid-April, which will likely lead to tighter restrictions in current US hot spots. Bloomberg reported that Germany confirmed 712 new cases, up more than 200 from the prior day (Source: COVID-19 Tracking Project).
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