Stock Market Settles after Dow Jones Set a New Record Monday

Quick overview

The Dow Jones Industrial Average climbed to a fresh high on Monday thanks to rising market sentiment and falling oil prices, but Tuesday morning saw the market settle down.

The Dow may end the quarter up by double digits, and the index set a record high on Monday. On Tuesday, however, the Dow ticked up 0.2% while the Nasdaq gained 0.4% and the S&P 500 gained 0.2%. All three indices are set to close off the quarter with substantial gains.

Bullish sentiment remains intact after a vigorous day of trading to start off the shortened week. Markets will close on Friday in recognition of the Independence Day weekend, and already this week is looking much more profitable for the market than the previous week. Tuesday marks the last day of the second quarter of the year.

Magnificent Seven Stocks Impress

Tesla (TSLA) was only one of several Magnificent Seven stocks to climb sharply on Monday, and the electric automaker added 8.5% to its stock value. Other Magnificent Seven stocks performed well too, like Alphabet (GOOG), which rose around 5%. However, both Apple (APPL) and Microsoft (MSFT) fell slightly, losing 0.72% and 1.12% respectively for the day.

The broad stock market is helped by subdued oil prices. After falling early in the week, these prices remained low, around $70-$72 a barrel. That is well below the $100+ per barrel that the market experienced during the worst periods of the Iran war earlier in the year.

Two major earnings reports are expected for Tuesday- Nike (NKE) and Constellation Brands (STZ). The shoemaker and wine and spirits producer both moved slightly higher- about 0.5% up from the previous day- leading into their earnings reports. Constellation Brands is expected to show slight decline for the previous year, and Nike should post a sales drop as well after a quarter of falling stock value.  

The cryptocurrency market remains bearish Tuesday, coming off gains the previous day and falling hard Tuesday to erase most of that progress. Bitcoin (BTC) is hovering just below $59K, and Ethereum (ETH) is holding on at $1.5K as the wider crypto market experiences losses of 1-2% among most of its leading coins.

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Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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