- The Nasdaq Composite Index dropped 60 points to 8,146.
- The DJIA index ended down 68 points 27,154.
- The S&P 500 index lost 18 points at 2,976.
Wall Street's benchmarks were ending the session on Friday lower as counter reports to the prior day's hype with respect of a 50 basis point rate cut from the Federal Reserve suggest that there will only be a 25 basis point rate cut. There were also headlines that Iran had seized a British-flagged oil tanker in the Strait of Hormuz which was not risk-friendly. Consequently, the Dow Jones Industrial Average, DJIA, ended down 68 points 27,154 and the S&P 500 index lost 18 points at 2,976. The Nasdaq Composite Index dropped 60 points to 8,146.
The Wall Street Journal dialled back expectations of a 50 basis point cut at the end of this month's Federal Open Market Committee's meeting as it reported that the Fed officials, based on recent public statements and interviews, signalled they were ready to cut rates by a quarter-percentage point. This sent the Fed-funds futures pricing in just a 22.5% chance of a half-point move, much lower than the 40% probability earlier in the day. US rates bear-flattened as a result with the front-end giving up most of its 5bp rally on the back of the William's noise the prior day. Elsewhere, corporate earnings showed a better-than-expected result from Microsoft Corp with solid growth in Azure and LinkedIn.
"Markets will be watching economic data next week as Fed speakers go into the blackout ahead of the July FOMC meeting. Geopolitics will also be closely watched over the weekend as tensions with Iran appear to be escalating," analysts at TD Securities explained.
DJIA levels
On a technical basis, the DJIA continues to consolidate, capped at recent record highs. Below the 20-Day moving average at 26888, the 23.6% retracement of the 3rd June low to 12th July recently printed high falls in at 26706 which meets April 23rd and 1st May double-top highs. Below there, we have the 23.6% retracement of the Dec 2018 to recent highs at 26056. the 38.2% fibo at 25226, below the 200-day moving average, comes in should the air b let out of the bubble on a disappointment from the Fed.
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 advances to near 1.0750 as risk appetite regains balance
EUR/USD extends its winning streak for the third successful day, trading around 1.0730 during the Asian session on Friday. The risk-sensitive currencies like the Euro gain ground as risk appetite regains balance ahead of US Nonfarm Payrolls.
GBP/USD trades on a stronger note 1.2530, all eyes on US NFP data
The GBP/USD pair trades on a stronger note around 1.2540 amid the softer US Dollar on Friday. The US Federal Reserve Chair Jerome Powell delivered a modest dovish message after the meeting on Wednesday, which weighs on the Greenback.
Gold lacks firm near-term direction, remains stuck in a range ahead of US NFP
Gold price struggles to gain any meaningful traction amid mixed fundamental cues. The Fed’s less hawkish outlook drags the USD to a multi-week low and lends support. Bets for a delayed Fed rate cut and a positive risk tone cap gains ahead of the US NFP.
Solana price pumps 7% as SOL-based POPCAT hits new ATH
Solana price is the biggest gainer among the crypto top 10, with nearly 10% in gains. The surge is ascribed to the growing popularity of projects launched atop the SOL blockchain, which have overtime posted remarkable success.
US NFP Forecast: Nonfarm Payrolls gains expected to cool in April
The United States Employment report will be released by the Bureau of Labor Statistics at 12:30 GMT. The US Dollar looks to employment data after the Fed signaled its intention to hold rates higher for longer on Wednesday.