The US markets ended mostly higher on Tuesday, while US Treasury yields fell on safe-haven buying after Italy’s new prime minister outlined new economic policies that could add to the nation’s debt. However, Dow Industrial loses the momentum and ended with marginal losses. Markets got some support as Wall Street looks to recover after recent chaos triggered by political turmoil in Italy. Newly installed Prime Minister Giuseppe Conte on Tuesday won a vote of confidence in parliament but ushered in a fresh wave of angst in his maiden speech, underlining his antiestablishment party’s hopes to cut corporate and individual taxes, putting the government at odds with other members of the eurozone. Still, investors appeared to put trade tensions aside, even as trade talks have frayed between the US and China. But, investors were eyeing the talks between leaders of the Group of Seven nations to be held in Canada on Friday and Saturday, where tariffs and trade are likely to be discussed.
On the economic front, an index measuring US service-sector activity reached its highest level in May in more than three years, helped by stronger demand from clients and favorable economic conditions. The IHS Markit US Services Business Activity Index rose 2.2 points to 56.8 in May from the prior month. According to the report, companies created jobs in response to accumulated backlogs of work. This output expansion was the fastest since April 2015, but the backlogs still exist and continue to rise. Besides, the Labor Department said that the Institute for Supply Management services index rose to 58.6 in May from 56.8, while a reading of job openings rose to a fresh record in April, reaching 6.7 million after 6.63 million in March.
The Dow Jones Industrial Average declined 13.71 points or 0.06 percent to 24799.98. On the other hand, the S&P 500 gained 1.93 points or 0.07% to 2748.80 and the Nasdaq was up by 31.40 points or 0.41 percent to 7637.86.
