8 April 2024 | FXGT.com
Weekly Market Recap – U.S. Stock Indexes End Winning Streak
- U.S. Stock Indexes End Winning Streak: The Dow Jones Industrial Average fell by 2.17%, the S&P 500 by 0.78%, and the Nasdaq 100 by 0.72%, ending their two-week winning streak. The decline was largely attributed to strong economic data, challenging earlier expectations of imminent interest rate cuts by the Federal Reserve.
- Economic Data: ISM Manufacturing report showed growth for the first time in 18 months, hitting a 20-month high in new orders and prices. The services sector, however, slowed down with minimal price expansion and reduced employment. Meanwhile, nonfarm payrolls add 303,000 jobs, showcasing a resilient labour market and hinting at a potential delay in the expected Federal Reserve rate cut.
- Fed’s Stance on Rate Cuts: Multiple Federal Reserve officials have emphasized the importance of a cautious approach to reducing interest rates, attributing their stance to the resilience of the US economy and a minor resurgence in inflation rates. The CME FedWatch tool now reflects a downward adjustment in market expectations, with the probability of a June rate cut decreasing to 53%.
- Oil Prices Surge on Geopolitical Tensions: For the fourth consecutive week, oil prices continue to climb, with Crude Oil reaching 87$ per barrel. This steady increase has sparked renewed concerns about inflationary pressures. The ongoing conflict between Israel and Hamas, along with attacks affecting Red Sea shipping routes, and the decrease in U.S. inventory levels, have all contributed to a bullish outlook in the oil market.
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