- DJIA, added 102 points, or 0.4% to 26,107.
- S&P 500 index put up 12 points, or 0.4% to reach 2,892.
- The Nasdaq Composite index added 44 points, or 0.6% to 7,837.
Wall Street's benchmarks performed robustly on Thursday, despite the heightened angst over trade wars and geopolitics in general. Ironically, the Iran risk helped to lift Wall Street on the back of a rise in part lead by shares of energy companies. The Dow Jones Industrial Average, DJIA, added 102 points, or 0.4% to 26,107, while the S&P 500 index put up 12 points, or 0.4% to reach 2,892. The Nasdaq Composite index added 44 points, or 0.6% to 7,837.
Additionally, the recent inflation data released earlier in the week showed prices falling which has added to the speculation that the Federal Reserve is on course to lower interest rates in the coming months - However, 2Y US Treasury yields rallied by another 5bps as the curve bull-steepened in response to rising geopolitical tensions.
US data
Analysts at ANZ Bank offered a summary of the US data released overnight as follows:
- A fall in US import prices to lowest level in five months supports the case for the Federal Reserve to cut interest rates this year. Import prices for May were down 0.3% and April data was revised down to +0.1%. Prices of goods imported from China were down 0.1% in May, indicating the tariffs are impacting volumes but not the import price. The tariff cost is primarily being absorbed by the US, where profit margins are being hit harder than the consumer wallet.
- US jobless numbers lifted in the week ended June 8, defying market expectations. The four week moving average of claims increased by 2500 last week, indicating a slight softening in the labour market.
Looking ahead, data will be front and center ahead of the weekend, with markets likely to react to both retail sales and IP. "Strength in both indicators could allow markets to pencil out some rate cut odds, but further weakness could continue to drive rates lower," analysts at TD Securities argued.
DJIA levels
For the DJIA, the technical outlook stays sideways while above the key 61.8% Fibo retracement level of April to June swing highs and lows. Bulls need to get through the 78.6% mark in the 26200s with a confluence of the 12th April gap the prior day. Bears will seek a break below the 20-D EMA that located just below the 50% Fibo of the recent daily range guarding a run towards the 200 D EMA and then the 25200 level, as being around the 11th March swing lows. On a drop below 25000, bears can look towards 24500s and then 50% of the upside run made at the end of Dec at 24150.
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 holds around $2,330 after dismal US data
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%.