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Tech stocks rebound despite weak US consumer outlook

Consumer confidence in the US fell in June, pressured by a weak outlook for the labour market and personal income. Despite the fragile consumer data, tech stocks rebounded on Tuesday after suffering multiple days of losses. On Wednesday, Asian equity markets were trading mixed as traders were still figuring out how to interpret an acceleration in inflation in both Canada and Australia.

Shane Strowmatt, LGT
Temps de lecture
5 minutes
US consumer confidence
© Shutterstock

In the US, the Conference Board’s Consumer Confidence Index slipped to 100.4 in June from last month’s 101.3 revised reading, according to data released on Tuesday. The expectation measurement fell about 2 points to 73 points. The survey showed just 12.5% of US consumers expect to see better business conditions in the next half year. The last time the figure was that low was in 2011. Current labour market conditions kept the index from falling more, while expectations for future employment were poor.

Nvidia bounces back

In New York, stocks were mixed with the recent slide in tech stocks coming to an end on Tuesday. Nvidia - which has become the poster child of the artificial-intelligence-driven stock market rally this year - rebounded 6.8% on Tuesday following multiple days of losses. The jump helped push the Nasdaq-100 to a 1.2% gain. The Dow Jones Industrial lost 0.8%, while the S&P 500 finished the session up 0.4%.

Canadian inflation accelerates

The Canadian Consumer Price Index increased 2.9% in May when compared with the same month a year ago, according to data released on Tuesday. The increase comes just three weeks after the Bank of Canada became the first Group of Seven central bank to cut its benchmark interest rate. The rate of price increases sped up from April's 2.7%, putting it further away from the central bank’s 2% target.

Inflation in Australia also picks up

Trading in the Asia-Pacific region was mixed as traders were busy interpreting the possible effects of a re-acceleration of inflation in Australia. The Consumer Price Index for Australia came in at 4.0% in May when compared with the previous year. That's up from April's 3.6%. Core inflation was also 4%, coming in higher than expectations. Australia's S&P/ASX 200 was leading losses out of the region, trading 0.8% lower.

Elsewhere in the Asia-Pacific region, trading was mixed. Hong Kong's Hang Seng Index was up 0.2%, while the CSI 300 was trading 0.1% lower. In Tokyo, the Nikkei 225 was leading gains, trading up 1.3%, and South Korea's Kospi was trading 0.5% higher.

Corporate and macroeconomic calendars

Corporate news in focus: General Mills quarterly figures, Nvidia annual general meeting.

Economic data in focus: Germany's GfK Consumer Climate, SNB Quarterly Bulletin, US new residential sales, release of Federal Reserve's annual bank stress test results.

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.

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