Following the holiday, investors gobbled up commodities and passed on U.S. equities as shares of Apple Inc dropped. Several global markets in parts of Europe and Asia were closed the Tuesday following the Christmas Day holiday and trading volumes were light.
Commodities gained as oil climbed to its highest since 2015, sustained by the closed Libyan crude pipeline as well as the supply cuts led by the Organization of the Petroleum Exporting Countries. U.S. crude increased by 2.24 percent to $59.78 per barrel and Brent was at $66.25, an increase of 2.35 percent.
The Dow Jones Industrial Average dropped 5.09 points to 24,748.97, the S&P 500 lost 2.44 points to 2,680.9 and the Nasdaq Composite dropped 27.91 points to 6,932.05. MSCI’s gauge of stocks across the globe lost 0.04 percent.
Two-year U.S. Treasury yields soared to nine-year highs, exacerbating a collapse of the gap in yields between short and long-term bonds. The gap between 2-year and 10-year yields shrank to 58.6 basis points as investors focused on new supply that will be sold into the light market this week
Benchmark 10-year notes increased 7/32 in price to yield 2.4648 percent and the 2-year note last dropped 1/32 in price to yield 1.9033 percent.
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The dollar when measured against a basket of major currencies, dropped 0.1 percent, with the euro also down 0.03 percent to $1.1865. The Japanese yen gained 0.05 percent compared to the dollar to 113.21 per dollar, while sterling was last trading at $1.3371, a 0.02 percent increase.
Gold prices reached three-week highs, and palladium reached its highest since 2001. Spot gold gained 0.6 percent to $1,282.61 per ounce.
Bitcoin rallied followings last week’s selloff. After losing nearly quarter of its value over a 10 day period, on Tuesday the cryptocurrency gained 14 percent almost reaching $16,000 on the Bitstamp exchange.