US: Stocks post hesitant gains at open

[NEW YORK] Major Wall Street indices posted small gains at the open Tuesday, with traders looking forward to new government data in the days ahead and a key Federal Reserve event.

Last week saw indices fall overall as fears that the fast-spreading Delta variant of Covid-19 would hold back the US economic recovery gripped investors, but indices rose solidly in Monday's trading and the Nasdaq posted a new high as enthusiasm returned.

About 15 minutes into trading, the benchmark Dow Jones Industrial Average was up 0.1 per cent to 35,386.57. The broad-based S&P 500 gained 0.2 per cent to 4,486.53, and the tech-rich Nasdaq Composite Index climbed 0.3 per cent to 14,991.17.

"The new week got off to a good start with ample participation in a buy-the-dip trade that drove both the S&P 500 and Nasdaq Composite to new record highs," said Patrick J O'Hare of Briefing.com. "The positive tone has faded a bit this morning, but it hasn't faded from view."

The optimism is fuelled by a combination of solid market gains in China, healthy corporate earnings, encouraging news about the longevity of the Covid-19 pandemic and a general feeling that markets can bounce back from the hits they take in trading.

Government data on new home sales is due out on Tuesday morning, which will be watched to gauge whether the US real estate market will continue at its frantic pace. Later this week will come readings on sales of big-ticket manufactured items and personal consumption expenditures, which will include a closely watched metric of inflation.

The Federal Reserve will hold its annual Jackson Hole conference this week, and Chair Jerome Powell will speak on Friday, perhaps outlining the central bank's latest views on monetary policy as the American economy recovers.

AFP