both NASDAQ and S&P drop after a strong start in maarch

Both the NASDAQ and S&P 500 were in the red on Tuesday, after starting the week and the new month in optimistic fashion.

Yesterday the benchmark S&P 500 had its best one-day session since June of last year, gaining close to 2% in value.

The boosts came as it was confirmed that the Johnson & Johnson vaccine was approved by the FDA, plus the House had approved President Biden’s Stimulus bill.

In sharp contrast, indices fell today as stocks like Tesla were down close to 2% as of writing.

In afternoon trading the S&P 500 and NASDAQ were down 0.16% and 0.63% respectively.

FTSE 100 rises on UK Budget hopes

The FTSE 100 was up for a second consecutive session, as markets looked for signs of optimism from the UK budget.

United Kingdom flag flies under London sky

Finance Minister Rishi Sunak is set to unveil the government’s first budget of the year later this evening, with rumours circulating that there could be more economic support for those impacted by COVID-19.

It has been stated that there could be an extension to the furlough scheme which has helped businesses retain staff during the pandemic.

In a statement earlier today, Sunak stated that he will do, “whatever it takes to support the British people and businesses through this moment of crisis”.

London’s FTSE 100 closed 0.38% higher on Tuesday.

Gold falls to lowest level since June

Gold prices fell to its lowest level since June last year as investors continued to move away from the safe haven commodity.

XAUUSD hit an intraday low of $1,707 earlier today, which was the lowest the metal had traded since June 17th, 2020.

Gold, which went on to reach an all-time high of $2,075, has since traded with an increased level of uncertainty, consolidating between $1,768 and $1,854, before breaking out of that floor last week.

Many still believe that gold prices could once again increase, should we have any further setbacks in battling the COVID-19 pandemic.

Quote of the day – “You never know what kind of setup [the] market will present to you, your objective should be to find [an] opportunity where risk-reward ratio is best.”

– Jaymin Shah

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Eliman Dambel

Senior Market Analyst