2023-07-21 16:36:00
© Archyde.com
Investing.com – At the end of a quiet week in which no major economic data was released except for retail sales that reinforced recession fears and gave markets a hint of what the Fed will do at its upcoming meeting and subsequent Jerome Powell press conference.
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US market and weekly performance
US economic indicators are trading high today in final trading following yesterday’s fall, with the announcement of Tesla () and Netflix earnings, which brought losses of 9% for both stocks, and fell with them by 2%.
It is now rising by 0.20% to 35,297.07 points, and if it succeeds in closing higher, this will be the tenth consecutive rise for the Dow Jones Industrial Average.
It is now rising by 0.27%, to record $4,547.01, following declining by 0.68% in yesterday’s trading.
As for the Nasdaq index, which includes technology companies, it will settle around 14072 points, with a sideways movement today, following falling by 2.05% in yesterday’s trading.
The movement of the US stock indices is heading to record strong weekly gains, as the Nasdaq index rose by nearly 0.25%, as well as the S&P 500 index rose by 1.02%, and the Dow Jones Industrial Average recorded a rise of regarding 2.31%, since the start of the first sessions of the week until now.
Commodity prices and the dollar now
gold now
At the same time, (Futures) declined in today’s trading by 0.39% to 1963.25 dollars, while spot contracts fell by 0.42% to 1961.28 dollars.
The secret of ascent
The dollar index rose in today’s trading by 0.26% to 100.860 once morest a basket of foreign currencies, at a time when the 10-year Treasury yields fell by 0.60% to 3.830%.
This helped put the dollar on the path to achieving its first weekly gain in 3 weeks, which reached regarding 1.34% so far. In addition to the support the dollar received from the data and the approaching interest rate decision, the dollar was also able to benefit greatly from the sharp decline on the back of reports that the Bank of Japan may not change its monetary policy settings at its meeting next Friday.
oil now
Oil contracts are rising today in the final trading of the week, and maintain it above the $80 level, specifically at $80.41, up by 0.97%. Texas crude rose by 1.08% to $76.45 a barrel.
The secret behind gold’s decline
Some believe that the current decline is a correction and profit-taking before a strong next week that will witness the issuance of the interest rate decision from the Federal Reserve, which may witness a new adoption of more interest rate hikes, which would plunge gold and risk commodities once morest the rise of the US dollar and bonds.
Gold’s decline also came due to the data issued yesterday in the United States, the slowdown in applications for US unemployment benefits, which data gave a signal of confidence regarding the labor market and the state of the US economy, and the rise and fall of the dollar without it. During the week ending July 15, exceeding expectations, to record its lowest level in nearly two months since the first week in April, recording 228,000 applications.
On the other hand, gold contracts also faced downward pressure, with returns recovering for the second day in a row, as the benchmark 10-year bond yields rose by 0.22%, to record 3.84%, with investors eager to own them at the expense of non-yielding gold.
Look at the US stock market
The high-tech Nasdaq is up 34.4% so far this year, as optimism regarding artificial intelligence and expectations of a Fed rate cap have increased investor bets on the sector.
Morgan Stanley cited strong manufacturing and infrastructure spending by the federal government as it raised its economic growth forecast for the year, saying it expects a soft landing for the economy.
American Express expectations remain the same
Shares of American Express Company ( ) fell 5% following record cardmember spending, but kept its full-year outlook unchanged negative.
Auto Nation Company (7865}) fell 7% following the auto retailer reported a sharp drop in used car sales as well as a rise in expenses, masking better-than-expected quarterly sales.
Tesla is still in shock, and so is Lucid
Tesla shares are now down 0.56%, following falling more than 9% yesterday due to negative future expectations.
Shares of Lucid electric cars are now down 1.23%, at $6.84, off a peak of $8 on July 10.
Shares of NIO () Electric Vehicles are now up 2.57%.
in focus
Futures traders expect the Fed to make another quarter percentage point when it meets next week, and analysts will hear what Chairman Jerome Powell says during Wednesday’s press conference for additional clues regarding the Fed’s future moves.
The Fed wants to bring inflation back to the annual target of 2%, which has been a continuing challenge amid a resilient economy with a tight labor market. Next Week also shows a report on the second quarter and the latest reading on inflation in the form of .
A reading on consumer confidence is also scheduled for release next Friday.
Traders are hesitant regarding where the Fed will go following next week’s meeting, with some expecting a pause in September and another rate hike in November.
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