15 April 2024 | FXGT.com
Weekly Market Recap – U.S. Stocks adjust to the reality of persistent inflation
- US Stock Market Performance: U.S. stocks experienced their second consecutive week of declines, as the market adjusted to the reality of persistent inflation. As a result, the Dow Jones Industrial Average closed the week down by 2.50%, the S&P 500 fell by 1.6%, and the Nasdaq 100 dipped by 0.67%.
- Interest Rate Expectations: Following the release of U.S. CPI data that exceeded expectations for the third month in a row, investors significantly scaled back their expectations for a Federal Reserve rate cut in June. Market participants now anticipate the first cut possibly occurring in September. Additionally, expectations have been adjusted to potentially just two rate cuts during the year, reflecting a more cautious outlook on monetary easing.
- EUR/USD Dynamics: The EUR/USD pair declined significantly, falling 1.80% and dropping below $1.07. This was driven by ECB signals suggesting a possible June rate cut, contrasting sharply with the Federal Reserve’s stance, which appears to delay cuts following the rise in U.S. inflation.
- Commodity Price Movements: Markets began the week under the pressure of escalating geopolitical tensions in the Middle East, influencing commodity prices. While WTI crude oil prices saw a modest decrease of approximately 1.30%, closing near $85.50 per barrel, gold prices moved in the opposite direction, reaching a historic high above $2,400 per ounce. The surge in gold prices was driven by the increased geopolitical risks, enhancing its appeal as a safe-haven asset amidst the uncertainty.
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