US Close: Apple rally fizzles, Senate passes infrastructure, NFIB all about labor shortages

US stocks lost their sizzle after Treasury yields continued to climb higher as expectations have clearly shifted for Fed Chair Powell to turn hawkish at Jackson Hole and make a formal announcement on tapering asset purchases at the September FOMC meeting.  The Nasdaq is underperforming given the rise in Treasury yields, as the Dow Jones Industrial Average makes a fresh record high after the Senate passed Biden’s $550 billion infrastructure bill.

Earlier, the S&P 500 made a fresh record high after Bloomberg reported Apple’s new iPhones will include a new pro-focused camera with enhanced video-recording features.  Excitement over the new iPhone lineup however will likely deliver an incremental boost as Apple is already in the middle of a super cycle.  Last month, Apple already asked suppliers to ramp up production to make the next-generation iPhone, so a lot of the good news has been priced in.


President Biden’s $550 billion infrastructure plan got a little closer to become a reality after the Senate passed it with a 69-30 bipartisan vote.  The House has signaled they will not pass this legislation unless the Senate can deliver on the bigger human infrastructure package that includes social spending and tax increases.  The current $3.5 trillion package doesn’t stand a chance of passing in its current form.  Progressives want to see the broader economic plan pass before voting on the $550 billion infrastructure plan.  The big uncertainty is if the partisan budget resolution is chopped down too much, will progressives refuse to hold up all infrastructure legislation.


The NFIB Small Business Optimism Index fell in July as labor shortages remain the biggest challenge.  The headline index dropped 2.8 points in July to 99.7.  The report highlighted 49% of owners reported job openings could not be filled, a 48-year record high.  Today’s report supports the pressure to increase wages which should fuel the persistent inflation debate.  A slowdown in job creation might complicate the growing thesis that September’s nonfarm payroll will be robust and pave the way for a September taper.

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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya