Wall Street Wavers as Inflation Data Eyed
Wall Street Wavers as Inflation Data Eyed
Wall Street fluctuated Tuesday as investors remained cautious amid ongoing market volatility and waited for key inflation data.
Wednesday and Thursday’s reports are anticipated to offer clues about the Federal Reserve's next interest rate decisions, with traders focusing on potential signs of easing inflation.
Meanwhile, Tuesday night’s debate between Vice President Kamala Harris and former President Donald Trump could influence markets, especially if it shifts expectations for the November election or reveals new economic policy plans from the candidates.
Preliminary data from the New York Stock Exchange (NYSE) show the Dow Jones Industrial Average fell 92.60 points, or 0.23%, to 40,763.00.
The Standard & Poor's 500 Index gained 25.60 points, or 0.47%, to 5,496.65, while the rich-tech Nasdaq Composite gained 111.33 points, or 0.66%, to 16,995.95.
Banks and technology stocks were among the biggest drags on the market.
Major mega-cap growth stocks, known as the "Magnificent Seven," were mixed.
Tesla led the gains with a 3.2% rise, followed by Nvidia, up 0.9%.
Alphabet increased by 1.2%, Amazon gained 2.5%, Meta (formerly Facebook) rose 0.3%, Microsoft added 1.7%, and Apple edged up 0.05%.
In the U.S. government bond markets, the yield on the 10-year Treasury, which influences mortgage rates and other economy-influencing loans, settled at 3.64%.
The policy-sensitive two-year yield, which closely tracks Federal Reserve interest rate adjustment expectations, closed at 3.60%.
Meanwhile, Bitcoin, the largest digital currency, was firmer after trading between US$54,415 and US$58,018 before closing at US$58,002 in New York.
With Bitcoin recently closing below US$58,350, the bullish momentum has stalled.
Initial support is seen at US$51,800, with further support at US$48,000; a bounce is anticipated from here.
Broadly, the upside should still be considered if an unexpected rebound occurs, though US$71,500 will pose a significant challenge.
Effective risk management and adaptable strategies are essential for navigating market volatility and seizing potential opportunities.
Ethereum mirrored Bitcoin's volatility, trading between US$2,323 and US$2,391 and closing at US$2,380.
For Ethereum to regain bullish momentum and target US$4,000 despite recent volatility, it needs to close above US$2,870, though this currently seems unlikely.
Clearing the US$2,870 level is critical for sustaining the bullish outlook and making further gains.
Support is now seen at around US$1,950–US$1,980; reassessment at this level is suggested.
Given the high volatility, traders should remain cautious, monitor prices closely, and apply effective risk management and adaptable strategies to navigate the market and capitalise on potential opportunities.
Precious metal prices remained volatile, with Spot Gold closing higher at US$2,514 and silver closing at US$28.40.
In the energy sector, oil prices declined, pulling energy stocks lower after OPEC cut its demand forecast for 2024 and 2025. Brent crude, the global benchmark, fell to $69.60, while West Texas Intermediate (WTI) closed at $65.68.
Meanwhile, the U.S. Dollar Index (DXY) was unchanged at 101.62.
Meanwhile, the Eurodollar was 1.1026, and the British pound finished at 1.3186. The Japanese yen ended lower at 142.30, and the Australian dollar was at 0.6660.
This content is provided by Australian Financial Services Corporation (AFSC) Pty Ltd (AFSC), trading as Crystal Ball Finance. AFSC is a corporate authorised representative (CAR No. 001275455) of ShareX Pty Ltd (AFSL No. 519872).
For information relating to our financial services, you should refer to our Financial Services Guide.
Crystal Ball Finance content is designed as the opinion only and is general in nature. It does not take account of your objectives, financial situation or needs. Nothing in this content shall be construed as a solicitation to buy or sell any security or product or to engage in or refrain from engaging in any transaction. There are risks involved in any financial investment and trading strategy, and the value of any investment can and does fluctuate and may even become valueless. You should consider the appropriateness of any investment or trading strategy having regard to your circumstances. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision or applying any trading strategy. This content is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty that it is accurate, complete or up to date. We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. Crystal Ball Finance does not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from any use or application of its content.