Upbeat gdp eased recession worries, boosting wall street to green. Commodities moved little ahead of pce inflation release. Dollar lost its heat. Cryptos ticked lower.Updated time: 04 Feb, 2023, 07:49 (UTC+04:00)
Wall Street finished in green after a fierce struggle as upbeat GDP data cooled recession fears. Analysis suggested that the U.S. economy performed better than expected in Q4, and the job market remains tight, which gave the Fed more reason to keep key interest rates at their restrictive levels for longer. All investors now pay close attention to the Fed's monetary policy meeting next week. All three major indexes rose, with Nasdaq taking the lead with 1.76%. Meanwhile, Dow Jones and S&P 500 added 0.61% and 1.1%, respectively.
Conversely, futures fell with decreases ranging from 0.1% - 0.5% while investors continue to track earnings results. Notably, Intel missed the estimated Q4 earnings, dipping nearly 10%. Elsewhere, Asian stocks celebrated gains after the Lunar New Year holiday.
Oil prices eased slightly and were set to end the week in flat amid the upcoming OPEC+ meeting and the signals on the U.S economy from the Fed’s preferred inflation gauge. Brent oil futures and WTI crude futures rose 0.2%-0.3% to trade at $87.69 and $81.22 per barrel.
Gold prices moved little, hovering around $1,930 in the anticipation of the Fed's inflation gauge release. Spot gold settled at $1,929.82 while gold futures dropped to $1,929.80. Despite 0.8% loss, both instruments were set to gain only 0.2% for the week.
Focus for commodities is now on the core Personal Consumption Expenditures price index reading for December, which is expected to have retreated further from the prior month.
The U.S dollar lost ground versus the Japanese yen, dropping 0.43% to 129.65 yen as traders bet a hawkish pivot from the BOJ was still in the offing. As a result, its index marked a 0.28% decline for the week, now standing at 101.70. Euro climbed near a 9-month high to $1.08975 while sterling and aussie also showed 1% growth to $1.2411 and $0.71225.
Cryptos showed no impression towards the latest U.S GDP data, leaving a red territory for the market. Both Bitcoin and Ethereum fell below their support levels of $23,000 and $1,600 while other major coins sank deeper.