Wall Street Fell As Growth Concerns Weighed On Tech. Oil Prices Rose But Expected To Lose Backwards. Gold Steadied. Yen Rebounded And Dollar Firmed. Cryptos Recovered.

Updated time: 26 Sep, 2022, 08:52 (UTC+04:00)

 Stocks:

Wall Street went red as investors dumped growth equities, notably tech firms in response to the Fed’s aggressive move. Big tech, consumer discretionary and financials fell most, causing tech-heavy Nasdaq to lead the plummet of 1.37%, followed by Dow Jones and S&P 500 with 0.84% and 0.35% fall.

Wall Street Fell As Growth Concerns Weighed On Tech

Futures, on the contrary, displayed a tiny upward trend with all being up 0.1-0.2%. Initial jobless claims came under expectations, at 213,000. A surge of 75bps rate hikes signaled a longer trajectory for policy rates than markets had priced in, growing concerns over drawdown in Q3 earnings, volatility in stock and bond trading in a year. 

Commodities:

Oil prices were in green but expected to lose for a fourth straight week as investors were concerned over the tightened global supply due to disruption from the Russia-Ukraine conflict along with hawkish rates. Brent oil futures and U.S WTI crude futures rose 0.2% to $90.50 and 0.1% to $83.61 per barrel respectively.

Gold prices stabilized and were anticipated to remain unchanged as selling pressure appeared to have eased.

Currencies:

Yen returned to the fray and gained 0.1% to 142.24 against the dollar, after Japan intervened in FX markets. The dollar still maintained its dominance with its index firmed to 111.27, having gained 1.5% for the week. Sterling gained little to $1.12645 supported by 50bps from the BOE while euro almost hit new lows. The Aussie and kiwi slightly recovered.

Cryptocurrencies:

Major cryptos rebounded. Bitcoin spent much regaining lost ground in the fitful aftermath of the Fed’s interest rate hike a day earlier. Ethereum was recently changing hands at about $1,330, a 7% gain after a drop below $1,250 due to post Merge hangover.

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