- The S&P 500 and the Dow Jones began the week on the wrong foot, the Nasdaq Composite rose.
- The Covid-19 outbreak in China, Russia – Ukraine jitters, and Fed tightening weighs on US stocks.
- WTI and gold are down amid a firm US dollar in the commodities complex.
US equities are trading mixed after Wall Street’s opened two hours ago. The losers are the S&P 500 and the Dow Jones Industrial Average, each losing between 0.15% and 0.49%, sitting at 4537.05 and 34,691.34, respectively. The gainer is the heavy-tech Nasdaq Composite gaining 0.25% at 14,787.13 around 15:33 GMT.
China’s Covid-19 outbreak, Russia - Ukraine woes dampened the market mood
The market risk appetite was affected by “fear” of a deceleration of the Chinese economy once China was hit by an outbreak of the Covid-19 Omicron variant. Also, the Russia – Ukraine conflict peace talks languished as Russia continued its offensive. At the same time, the greenback gains, underpinned by the Federal Reserve, as market participants expect a 50 bps increase in the May meeting by the US central bank, as US Treasuries yields keep advancing.
Aside from this, US equities sector-wise are led by Consumer Discretionary, Real Estate, and Utilities, up 1.25%, 0.73%, and 0.01% each. The main losers are Energy, Materials, and Financials, down 2.65%, 1.41%, and 1.31%, respectively.
The US Dollar Index, a gauge of the greenback’s value, sits at 99.224, up 0.42%, while the 10-year US Treasury yield eased off the highs, down three basis points at 2.462%.
Worth noting that parts of the yield curve inverted, with 5s at 2.636%, while the 30s at 2.600%, at some time during the day, a signal that triggers “recession concerns” in the market participants.
In the commodities complex, the US crude oil benchmark, WTI, is down 4.69%, trading at $107.39 BPD, while gold (XAU/USD) is down 1.05%, exchanging hands at $1936.85 a troy ounce, pressured by buck’s gains.
The US economic docket featured the US Goods Trade Balance for February, which came at $-106.59B better than the $107.57B January’s deficit, while the Dallas Fed Manufacturing for March rose by 8.7, lower than the 11 foreseen, and trailed February’s 14 figure.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.