Stocks Drop After Fed Minutes – Dow Down 0.51%
US Stock markets fell in trading yesterday after Fed Meeting minutes indicated that interest rates would remain higher for longer, however strong earnings after the bell from Nvidia are set to bolster markets in the sessions ahead. The Dow led the way lower, losing 0.51% on the day, followed by the S&P which dropped 0.27%, and the Nasdaq which closed 0.18% lower. US treasury yields pushed higher again, the rate-sensitive 2-year adding 5 basis points to 4.879% and the 10-year gaining 2 basis points to 4.434% whilst the dollar jumped against its peers, rising 0.28% on the DXY and notably finishing higher against the Kiwi and Pound despite a more hawkish RBNZ and a stronger than expected UK CPI print. Oil prices dipped hard, Brent losing 1.18% to $81.90 a barrel and WTO sinking 1.39% to trade at $77.57 on the close. However, once again Gold took a harder hit as it dropped 1.8% to $2,377 per ounce on the day as the market priced in the change in US interest rate expectations.
Gold Dips on Fed Update
Gold prices dropped in trading yesterday as Federal Reserve Meeting Minutes confirmed that rates will probably remain higher for longer than the market has recently been pricing in. Prices dropped 1.8% in trading yesterday and the world’s favourite metal is now sitting nearly 3% off its recent record high. Traders will now be paying very close attention to key data updates out of the states to see whether the bull run remains on course or if we can now look at Monday’s high as a longer-term target. Given the speed of Gold’s recent ascent, there is plenty of room on a technical basis for a big pullback in the coming sessions. Initial support on the hourlies is now sitting around the $2,352 level and a break there could see it challenge the $2,280 level whilst moves back higher could quickly see it challenge Monday’s high at $2,449.89 and extend into fresh territory.
Traders Prepare for More Moves Ahead Today
Traders are bracing themselves for more volatility across global markets today as investors continue to digest the latest update from the Fed Meeting Minutes as well as another stellar report from Nvidia. Kiwi traders have already been hard at work as stronger-than-expected Retail Sales data came out early in the Asian session. There is little else out on the calendar in Asia, however, there are a raft of Flash Manufacturing and Services PMI numbers due out across the next two sessions with France, Germany, the EU, the UK, and the US all set to release figures. The New York session also sees the usual weekly unemployment claims data release as well as New Homes Sales data but expect these to be superseded in market impact by yesterday’s Fed minutes fallout and the Nvidia update.
