CURRENCY MARKET WRAP 

As of Mon Jul 22nd, Singapore Time zone UTC+8

Dollar Index +0.40%, 97.15  
USDJPY, +0.37%, $107.82
EURUSD, -0.38%, $1.1217
GBPUSD, -0.24%, $1.2512
USDCAD, +0.14%, $1.3055
AUDUSD, -0.47%, $0.7043
NZDUSD, -0.23%, $0.6760

Price action for most of the day had been muted until Iran said it seized a British oil tanker and The Wall Street Journal reported that the Fed is signaling a 25-basis points rate cut at the July 30-31 FOMC meeting.

The report dampened hopes for a 50-basis points rate cut, which had already been on the decline after a Fed spokesman dialed down comments from NY Fed President Williams that were perceived as dovish. In turn, the fed-funds sensitive 2-yr yield increased four basis points to 1.82%, while the 10-yr yield increased one basis point to 2.05%. The U.S. Dollar Index rose 0.4% to 97.15. According to the CME FedWatch Tool, the implied likelihood for the quarter-point cut climbed to 77.5% from 39.8% on Thursday.

STOCK MARKET WRAP 

S&P500, -0.62%, 2,976.61
Nasdaq, -0.88%, 7,834.90
Nikkei Futures, -0.10%, 21,358.0

S&P 500 faded into the close and lost 0.62% on Friday, as geopolitical angst and expectations for a smaller Fed rate cut weighed on the broader market. The Nasdaq Composite lost 0.88%, and the Russell 2000 lost 0.5%.

The Dow Jones Industrial Average (-0.3%) fared slightly better, supported by shares of Boeing (BA 377.36, +16.25, +4.5%) after it announced a $4.9 billion charge for its 737 MAX grounding.

In other earnings news, Dow components Microsoft (MSFT 136.62, +0.20, +0.2%) and American Express (AXP 124.82, -3.58, -2.8%) beat earnings estimates, but the price action in shares was disappointing. MSFT was up as much as 3.1% today but faded alongside the broader market during the afternoon.

CURRENCY MARKET WRAP 

As of Fri Jul 19th, Singapore Time zone UTC+8

Dollar Index -0.09%, 97.19    
USDJPY, +0.06%, $107.42
EURUSD, 0.00%, $1.1260
GBPUSD, 0.00%, $1.2543    
USDCAD, -0.02%, $1.3036    
AUDUSD, +0.02%, $0.9214    
NZDUSD, +0.05%, $0.6776    

New York Fed President Williams (FOMC voter) catalyzed a slow-moving market after he said that when interest rates are low and there are signs of economic slowing, it is better to lower rates and keep them low rather than keep the Fed’s powder dry. The dovish commentary increased the probability for a 50-basis points rate cut at the July 30-31 FOMC meeting to 66.9% from 34.3% yesterday, according to the fed funds futures market.

Lower rates, which were seen across the U.S. Treasury yield curve, should continue to favor risk assets. The fed-funds sensitive 2-yr yield declined five basis points to 1.78%, and the 10-yr yield declined two basis points to 2.04%. The U.S. Dollar Index lost 0.5% to 96.69.

Separately, oil prices fell for the sixth straight session on Thursday. WTI crude settled 2.8% lower at $55.19/bbl but finished on a high note after Trump said the U.S. Navy defensively shot down an Iranian drone near the Strait of Hormuz.

STOCK MARKET WRAP 

S&P500, +0.36%, 2,978.87
Nasdaq, +0.19%, 7,850.12
Nikkei Futures, +0.13%, 21,118.0    

S&P 500 overcame a sluggish start to increase by 0.4% on Thursday, as dovish Fed commentary bolstered expectations for accomodative monetary policy. In addition, mostly positive reactions to earnings reports helped provide support for the market. 

The Nasdaq Composite and the Russell 2000 both increased 0.3%. The Dow Jones Industrial Average finished flat, pressured by losses in shares of Boeing (BA 361.11, -8.41, -2.3%) and UnitedHealth (UNH 260.60, -6.05, -2.3%) with UNH unable to gain on positive earnings results.

Overall, the gains were modest, but the S&P 500 consumer staples (+0.8%), financials (+0.8%), information technology (+0.8%), and utilities (+0.8%) sectors did gain 0.8% apiece. The communication services sector (-0.9%) was a drag on the market, as shares of Netflix (NFLX 325.21, -37.23) fell 10.3% after disappointing investors with a miss on net subscriber additions. In other earnings news, Philip Morris International (PM 87.71, +6.66, +8.2%), IBM (IBM 149.63, +6.56, +4.6%), Morgan Stanley (MS 44.43, +0.66, +1.5%), and Honeywell (HON 173.88, +5.26, +3.1%) climbed on better-than-expected results.

CURRENCY MARKET WRAP 

As of Thu Jul 18th, Singapore Time zone UTC+8

Dollar Index -0.09%, 97.19    
USDJPY, -0.19%, $107.94    
EURUSD, +0.10%, $1.1227
GBPUSD, +0.03%, $1.2435    
USDCAD, +0.02%, $1.3055    
AUDUSD, +0.14%, $0.7009    
NZDUSD, +0.01%, $0.6732

In Trade, The Wall Street Journal published a report right before the close, indicating that the U.S. and China remain conflicted about restrictions on Huawei Technologies. This further weighed on the already lacklustre risk appetite on Wednesday.

The 2-yr yield declined three basis points to 1.83%, and the 10-yr yield declined six basis points to 2.06%. The U.S. Dollar Index lost 0.2% to 97.21. WTI crude lost 1.4% to $56.78/bbl.

For Canada’s inflation print, the Loonie continues to rise despite benign data. Although consumer prices declined less than expected in the month of June, the -0.2% (consensus -0.3%) decrease was still the first drop in inflation this year. It drove the year over year rate down to 2% from 2.4%.

STOCK MARKET WRAP 

S&P500, -0.65%, 2,984.42
Nasdaq, -0.48%, 7,888.76
Nikkei Futures, -1.34%, 21,133.0

S&P 500 lost 0.6% on Wednesday, pressured by noticeable losses in the transport stocks after CSX Corp. (CSX 71.38, -8.17, -10.3%) provided disappointing earnings results and guidance. The broader market traded modestly lower for most of the day with losses accelerating into the close. CSX was presumably the biggest influence on the transports, but earnings warnings from trucking companies Knight-Swift (KNX 35.08, -0.81, -2.3%) and Covenant Transport (CVTI 14.65, -0.51, -3.4%) also contributed to the negative sentiment.

The S&P 500 industrials sector (-2.2%) was Wednesday’s outright laggard, nearly doubling the losses of the second-worst performing energy sector (-1.2%). There were some bright spots in the space, though. Top-weighted component Boeing (BA 369.52, +6.77) rose 1.9% on no specific news catalyst, while United Airlines (UAL 94.78, +0.86, +0.9%) and Cintas (CTAS 260.37, +20.93, +8.7%) advanced on better-than-expected earnings results.

The S&P 500 utilities (+0.4%) and health care (+0.02%) sectors were the lone sectors that finished higher. Abbott Labs (ABT 85.76, +2.60, +3.3%) gave the health care sector some support after pleasing investors with its earnings results. Despite earnings-related gains in Bank of America (BAC 29.19, +0.20, +0.7%) and U.S. Bancorp (USB 54.22, +1.18, +2.2%), the S&P 500 financial sector (-0.9%) was unable to gain any ground. Most components finished lower, as the decline in U.S. Treasury yields, and some curve-flattening, weighed on the sector.

CURRENCY MARKET WRAP 

As of Wed Jul 17th, Singapore Time zone UTC+8

Dollar Index +0.05%, 96.82     
USDJPY, -0.03%, $108.21    
EURUSD, +0.01%, $1.1212 
GBPUSD, +0.03%, $1.2409 
USDCAD, -0.06%, $1.3087
AUDUSD, +0.02%, $0.7016  
NZDUSD, +0.13%, $0.6701    

U.S. Retail sales for June increased 0.4% (consensus 0.2%), which contributed to the declining interest in U.S. Treasuries. The 2-yr yield and the 10-yr yield increased three basis points each to 1.86% and 2.12%, respectively. The U.S. Dollar Index advanced 0.5% to 97.38.

Dovish comments from Powell and Chicago Fed President Evans (FOMC voter) affirmed expectations for at least a 25-basis points rate cut at the July 30-31 FOMC meeting. A 50-basis points rate cut or further rate cuts beyond this month, however, remains less clear. On Tuesday, better-than-expected retail sales for June and Dallas Fed President Kaplan (non-FOMC voter) advocating against aggressive rate cuts kept hopes subdued.

STOCK MARKET WRAP 

S&P500, -0.34%, 3,012.13      
Nasdaq, -0.50%, 7,958.50
Nikkei Futures, -0.26%, 21,455.0

The session began with very little price action, although the Dow did set a new all-time high in the early going amid positive reactions to earnings reports from JPMorgan Chase (JPM 115.12, +1.22, +1.1%) and Goldman Sachs (GS 215.52, +3.94, +1.9%). Also, JPM and GS, Wells Fargo (WFC 45.30, -1.41, -3.0%) and Johnson & Johnson (JNJ 132.50, -2.21, -1.6%) beat earnings estimates, but shares finished noticeably lower.

Despite the mostly positive results, the broader market was seemingly uninterested as the good news may have already been priced in. An understanding that earnings from big tech companies are just around the corner may have also kept some buyers sidelined.

Price action picked up after Trump said that there is still a “long way to go” with China on trade. This helped drive stocks to session lows, although losses were only modest. At its low, the S&P 500 was only down 0.4% and was able to hold above the 3000 level.

CURRENCY MARKET WRAP 

As of Mon Jul 16th, Singapore Time zone UTC+8

Dollar Index +0.02%, 96.93
USDJPY, +0.02%, $107.9
EURUSD, -0.03%, $1.1260
GBPUSD, -0.04%, $1.2517  
USDCAD, +0.03%, $1.3049
AUDUSD, -0.06%, $0.7038  
NZDUSD, +0.08%, $0.6722

Foreign exchange markets had a quiet outing on Monday. The U.S. Dollar edged higher, with its potential upside limited by expectations the Federal Reserve will cut interest rates at the upcoming policy meeting. The yield on the 10-year Treasury note has fallen by nearly 60 basis points this year to 2.096% on Monday. Investors expect the Fed to reduce its key rate by 25 basis points and make another cut in September.

Sterling hovered close to six-month lows, with traders still nervous about a loss of momentum in the UK economy, the prospect of an interest rate cut and a new prime minister.

STOCK MARKET WRAP 

S&P500, +0.02%, 3,014.30
Nasdaq, +0.17%, 8,258.18
Nikkei Futures, +0.21%, 21,593.0

Market eked out small gains on Monday. The major averages struggled to find direction, but the S&P 500 (+0.02%), Dow Jones Industrial Average (+0.1%), and Nasdaq Composite (+0.2%) did manage to set new record closes.

Facebook Inc. faced its latest Washington crisis Monday, with Treasury Secretary Steven Mnuchin joining a parade of policy makers and politicians who’ve bashed its proposed cryptocurrency. In a press conference Monday, Treasury Secretary Steven Mnuchin said Facebook’s proposed digital currency, Libra, “could be misused by money launderers and terrorist financiers” and that it was a “national security issue.”, demonstrating the hurdles the company must overcome to ever make the token a reality.

In earnings news, Citigroup (C 71.73, -0.04, -0.1%)  beat analysts’ estimates for quarterly profit as a tight lid on costs and strength in consumer lending helped the third-largest U.S. bank counter weakness in its trading business. However, trading revenues were weak and the bank reported tighter net interest margins. On a related note, shares of JPMorgan Chase (JPM 113.90, -1.40, -1.2%), Wells Fargo (WFC 46.70, -0.66, -1.4%), and Goldman Sachs (GS 211.58, -2.36, -1.1%) each lost over 1.0% ahead of the companies’ results tomorrow morning.

Shares of General Electric Co. dropped after UBS backed away from its bullish stance, citing the stock’s significant outperformance in the face of continued power market weakness and a significant decline in interest rates. GE is scheduled to report second-quarter results on July 31, before the market opens.

Semiconductor company Broadcom (AVGO 288.34, +2.95, +1.0%) outperformed on reports that acquisition talks with Symantec (SYMC 22.84, -2.73, -10.7%) broke down. The China-sensitive industry might have also drawn some interest after Beijing reported better-than-expected data for industrial production, fixed asset investment, and retail sales for June.

CURRENCY MARKET WRAP 

As of Mon Jul 15th, Singapore Time zone UTC+8

Dollar Index +0.05%, 96.82
USDJPY, -0.83%, $107.83
EURUSD, -0.06%, $1.1271
GBPUSD, -0.07%, $1.2572    
USDCAD, +0.03%, $1.3034
AUDUSD, +0.11%, $0.7017
NZDUSD, +0.29%, $0.6694

Friday’s advance was supported by continued hope for a rate cut taking place as soon as July 31. Powell’s dovish two-day testimony on monetary policy was followed by an overt call for a lower fed funds rate range. Chicago Fed President, Charles Evans, said on Friday that “a couple rate cuts” are needed in order to boost inflation. Interestingly, this comes just two months after the FOMC voter said that the fed funds rate could remain at its current level until late 2020. The dovish remarks led to another increase in expectations for a 50-basis point rate cut. At the end of the week, the fed funds futures market saw a 21.4% implied likelihood of a 50-basis point rate cut on July 31, up from 5.4% one week ago.

Treasuries started the day in the red, but a daylong rebound lifted all tenors into the green by the close. The 10-yr yield dipped one basis point to 2.11%. The U.S. Dollar Index returned into the neighbourhood of its 200-day moving average (96.77), sliding 0.25% to 96.81.

STOCK MARKET WRAP 

S&P500, +0.46%, 3,013.77
Nasdaq, +0.59%, 7,943.24
Nikkei Futures, +0.47%, 21,600.0

The major averages ended the week at fresh record highs after a steady daylong push that was paced by the Dow Jones Industrial Average (+0.9%) while the Nasdaq (+0.6%) and S&P 500 (+0.46%) recorded slimmer gains.

Eight out of eleven sectors recorded gains on Friday, with cyclical groups faring better than the countercyclical side. Industrials (+1.8%) and consumer discretionary (+1.1%) spent the day atop the leaderboard to end the week with respective gains of 1.2% and 2.1%. Industrials rallied alongside heavyweight Boeing (BA 365.33, +6.33, +1.8%) while transport stocks outperformed. The Dow Jones Transportation Average jumped 2.4% with trucking names leading the push. JB Hunt (JBHT 92.94, +5.18, +5.9%) and Ryder (R 57.53, +3.14, +5.8%) spiked near 6.0% apiece, even though peer, U.S. Xpress (USX 4.32, -0.53, -10.9%), warned that industry conditions have worsened.

On the downside, the health care sector (-1.2%) spent the day behind the remaining groups. Drugmakers were pressured after Illumina (ILMN 305.05, -58.61, -16.1%) issued weaker than expected guidance for Q2 and lowered its outlook for the fiscal year. Another sector component, Johnson & Johnson (JNJ 134.30, -5.81, -4.2%), slid to a five week low after Bloomberg reported that the company could face a criminal probe into undisclosed health risks associated with JNJ’s baby powder.

CURRENCY MARKET WRAP 

As of Fri Jul 12th, Singapore Time zone UTC+8

Dollar Index +0.05%, 97.11
USDJPY, +0.24%, $108.60
EURUSD, -0.07%, $1.1250
GBPUSD, +0.12%, $1.2521
USDCAD, -0.03%, $1.3069
AUDUSD, +0.19%, $0.6972
NZDUSD, +0.25%, $0.6661

Fed Chair Powell wrapped up his semiannual testimony on Capitol Hill on Thursday, which didn’t differ too much from yesterday’s session. Powell’s dovish tone assured the market’s thinking that the Fed will cut the fed funds rate by at least 25 basis points at the July 30-31 FOMC meeting.

Higher-than-expected consumer inflation data, however, did temper some expectations for a 50-basis points rate cut. The core reading in the Consumer Price Index for June rose 0.3% (consensus 0.2%), raising the yr/yr rate to 2.1% versus 2.0% in May. According to the fed funds futures market, the implied likelihood for a 50-basis points cut declined to 20.4% from 26.6% yesterday. 

Separately, the White House abandoned its proposal to eliminate rebates from government drug plans, which benefited shares of health insurers and companies with exposure to pharmacy benefit management.

The 2-yr yield increased three basis points to 1.85%, and the 10-yr yield increased six basis points to 2.12%. The U.S. Dollar Index was relatively unchanged, +0.05% at 97.11. WTI crude declined 0.4% to $60.26/bbl.

STOCK MARKET WRAP 

S&P500, +0.23%, 2,999.91
Nasdaq, -0.08%, 7,896.78
Nikkei Futures, +0.73%, 21,658.0

S&P 500 (+0.23%) and Dow Jones Industrial Average (+0.9%) closed at record highs on Thursday amid lingering rate-cut optimism. The Dow also hit the 27,000 level for the first time, but the Nasdaq Composite (-0.08%) and Russell 2000 (-0.5%) were unable to keep pace.

Thursday’s leaders included most of the S&P 500 cyclical sectors. The industrials (+0.7%), financials (+0.6%), and materials (+0.4%) sectors finished atop the standings. The real estate sector (-1.2%) was the day’s outright laggard amid higher U.S. Treasury yields.

In earnings news,Fastenal (FAST 30.36, -0.89, -2.9%)disappointed investors by missing profit estimates. Delta Air Lines (DAL 60.16, +0.69, +1.2%), on the other hand, reported better-than-expected results and raised its full-year guidance.

CURRENCY MARKET WRAP 

As of Thu Jul 11th, Singapore Time zone UTC+8

Dollar Index -0.44%, 97.06
USDJPY, -0.48%, $108.33
EURUSD, +0.45%, $1.1258
GBPUSD, +0.31%, $1.2506
USDCAD, -0.40%, $1.3074
AUDUSD, +0.44%, $0.6959
NZDUSD, +0.59%, $0.6644

Fed Chair Powell took to Capitol Hill for his semiannual testimony on monetary policy, but the market didn’t have to wait for it to begin to hurriedly leap to record highs. The market received Powell’s prepared remarks before his testimony, and the market interpreted the written statement as a strong case for at least a 25-basis points rate cut given the uncertainty in the economic outlook. There was already a 100% implied likelihood for a 25-basis points cut in the fed funds rate prior to today, according to the fed funds futures market. The probability for a 50-basis points cut, however, did increase to 26.6% from 3.3% yesterday. Contributing to the rebalancing was Powell saying that the stronger-than-expected June employment report did not alter the Fed’s mindset, contrary to the market’s thinking last Friday. 

The Fed also released the minutes from the June FOMC meeting, although market reaction was muted as Powell’s comments provided a more updated view on monetary policy. Powell will head back to Congress today to conclude his testimony.

Shorter-dated U.S. Treasuries increased noticeably on growing expectations for a sharp rate cut, driving the 2-yr yield down eight basis points to 1.82%. The 10-yr yield increased one basis point to 2.06%. The U.S. Dollar Index declined 0.44% to 97.06.

STOCK MARKET WRAP 

S&P500, +0.45%, 2,993.07
Nasdaq, +0.98%, 7,903.40
Nikkei Futures, +0.06%, 21,522.5

The S&P 500 gained 0.45% on Wednesday, briefly surpassing 3000 for the first time after Fed Chair Powell fueled the market’s expectations for a rate cut at the July 30-31 FOMC meeting. The Dow Jones Industrial Average (+0.3%) and the Nasdaq Composite (+0.8%) also set new intraday highs with the Nasdaq finishing at a record close. The Russell 2000 increased 0.2%.

The dovish tone helped eight of the 11 S&P 500 sectors finish higher. The S&P 500 energy sector (+1.4%) led the advance, buoyed by higher oil prices ($60.48/bbl, +$2.69, +4.7%) amid bullish inventory data and supply disruption in the Gulf of Mexico. The financials (-0.5%), industrials (-0.3%), and materials (-0.2%) sectors were the only sectors that finished lower.

Separately, American Airlines (AAL 32.94, +0.58, +1.8%)was a notable gainer on Wednesday after it raised its Q2 guidance for unit revenue and pre-tax margin. Deere (DE 160.81, -2.54)fell 1.6% after UBS downgraded the stock to Neutral from Buy, although it did raise its price target to $167.

CURRENCY MARKET WRAP 

As of Wed Jul 10th, Singapore Time zone UTC+8

Dollar Index +0.12%, 97.50
USDJPY, +0.15%, $108.89
EURUSD, -0.08%, $1.1206
GBPUSD, -0.40%, $1.2462
USDCAD, +0.23%, $1.3125
AUDUSD, -0.61%, $0.6930
NZDUSD, -0.29%, $0.6603

In trade, USTR Lighthizer and Treasury Secretary Mnuchin spoke to China’s Vice Premier Liu He on Tuesday, according to CNBC. Market reaction was muted, as it was expected that there would be a phone call this week to continue trade talks.

The main highlight for markets this week will be Fed Chair Powell’s testimony before the House Financial Services Committee on monetary policy and the state of the US economy later today. With markets cutting their odds for the Fed cut during the next meeting after the latest NFP report, the content of the speech has the potential to meaningfully impact market expectations.

U.S. Treasuries finished slightly lower in another tight-ranged session. The 2-yr yield increased one basis point to 1.90%, and the 10-yr yield increased two basis points to 2.05%. The U.S. Dollar Index advanced 0.12% to 97.50. WTI crude increased 0.7% to $57.79/bbl.

STOCK MARKET WRAP 

S&P500, +0.12%, 2,979.63
Nasdaq, +0.53%, 7,826.86
Nikkei Futures, -0.17%, 21,493.0

S&P 500 increased 0.12% on Tuesday, as shares of large-cap technology stocks helped the stock market overcome a slow start. Overall, there appeared to be a wait-and-see mindset for potential market-moving catalysts this week, including Fed Chair Powell’s semiannual monetary policy testimony on Capitol Hill later today.

Solid gains in the FAANG stocks – Facebook (FB 199.21, +3.45, +1.8%), Apple (AAPL 201.24, +1.22, +0.6%), Amazon (AMZN 1988.30, +35.98, +1.8%), Netflix (NFLX 379.93, +3.77, +1.0%),and Alphabet (GOOG 1124.83, +8.48, +0.8%)– contributed to the positive disposition. The S&P 500 real estate sector (+0.5%) was Tuesday’s best-performing sector.

On the downside, the materials (-1.0%), consumer staples (-0.6%), and industrials (-0.2%) sectors were the lone sectors that finished lower. PepsiCo’s (PEP 131.74, -0.82, -0.6%)better-than-expected earnings results were unable to stir further buying interest in the stock or the consumer staples sector.

In other corporate news, Acacia Communications (ACIA 64.91, +16.85, +35.1%) agreed to be acquired by Cisco (CSCO 56.34, +0.15, +0.3%)for $2.6 billion, or $70 per share, in cash. The deal represented a 46% premium to ACIA’s closing price on Monday.

CURRENCY MARKET WRAP 

As of Tue Jul 9th, Singapore Time zone UTC+8

Dollar Index +0.14%, 97.37
USDJPY, +0.23%, $108.72
EURUSD, -0.10%, $1.1215
GBPUSD, -0.07%, $1.2515
USDCAD, +0.20%, $1.3103
AUDUSD, -0.12%, $0.6973
NZDUSD, -0.07%, $0.6626

There were no notable data prints out if the U.S. and G7 on Monday, the major currencnies remained relatively unchanged.

Turkish Lira dropped on Monday as investors ditched Turkish assets after the country’s central bank governor was ousted by President Recep Tayyip Erdogan. A presidential decree released Saturday said Turkish central bank Governor Murat Cetinkaya was removed from his post and replaced with his deputy, Murat Uysal. The decree did not specify why Cetinkaya was fired, but speculation of his removal had been rising given his reluctance to cut interest rates at Erdogan’s behest. Cetinkaya’s dismissal comes at a time when Turkey’s economy is in disarray and Erdogan struggles to maintain political power.

U.S. Treasuries finished little changed in a quiet session. The 2-yr yield increased one basis point to 1.89%, and the 10-yr yield declined one basis point to 2.03%. The U.S. Dollar Index increased 0.14% to 97.37. WTI crude increased 0.2% to $57.40/bbl.

STOCK MARKET WRAP 

S&P500, -0.48%, 2,975.95
Nasdaq, -0.71%, 7,785.79
Nikkei Futures, -0.23%, 21,700.0

S&P 500 lost 0.48% on Monday, pressured by analyst downgrades and waning hopes for a 50-basis points rate cut at the end of the month. With the major indices near record highs, investors adopted a cautious mindset in front of speeches from several Fed officials this week.

Contributing to the risk-off mood was a slew of downgrades, which featured Apple (AAPL 200.02, -4.21, -2.1%)being downgraded to Sell from Neutral at Rosenblatt. Morgan Stanley, meanwhile, downgraded global equities to Underweight from Equal-Weight, citing a poor outlook for equities over the next three months. Weakness in Apple contributed to the underperformance in the S&P 500 information technology sector (-0.7%). Losses from the materials (-1.1%), communication services (-0.9%), health care (-0.8%), industrials (-0.7%), and financials (-0.6%) sectors also hindered the broader market.

In other corporate news, shares of Boeing (BA 351.12, -4.74, -1.3%) underperformed the broader market amid news that a Saudi airline opted out of $5.9 billion 737 Max order in favour of Airbus.