Wall Street witnessed a mixed trading fashion ahead of key economic data that cautioned dollar and gold. Oil struggled to recover. Crypto ended winning streaks.Updated time: 06 Dec, 2022, 07:26 (UTC+04:00)
Wall Street was mixed as investors digested a series of varied economic data proving the Fed’s interest rates are working. While the PCE index was up 0.3% proving resilience ahead of the jobs report, manufacturing activity slipped below a reading of 50 for the first time since May 2020, signaling a cooling economy. This raised again recession fears, which sent Treasury yields to deep red despite easing in the Asian session. Selloff in Salesforce pressured Dow Jones to fall 0.56%. S&P 500 dropped 0.1% led by lower Financials and Consumer Staples. Nasdaq gained 0.13% thanks to tech despite continuing worry about lower iPhone production. Asian shares were flat.
S&P 500 futures and Nasdaq futures eased 0.1-0.2% while Dow Jones futures were steady. Ahead the day, the focus turns to fresh nonfarm payrolls, unemployment and hourly wages data.
Easing COVID-19 restrictions in two Chinese cities and dollar recovery couldn’t help oil prices rebound. Brent crude futures lost 0.1% to sell at $86.77 while U.S WTI crude futures slipped 0.2% to $81.08 per barrel. Both benchmarks were set to gain for the first week after three consecutive weeks of losses.
Gold prices remained stable as market participants prepared for important U.S. payrolls data that would affect the rate hike. Gold futures traded close to $1,814.70 per ounce, which is their highest level in five months. Spot gold dipped 0.1% to $1,800.96 but stayed close to three-month highs.
The dollar held firm but was restrained close to 16-week lows as rising consumer spending in October contributed to investors' perception that a rate hike was impending. Its index rose nearly 0.2% to 104.840, but still lost ground against yen and now traded at 135.25 yen. The euro and sterling shared the similar patterns of 0.1% downward, settling down at $1.0512 and $1.2237 apiece.
Crypto ended the week in red after a short-term winning streak since investors set a cautious mood for the industry’s fate and the wider economy. Bitcoin was off 0.8% to trade just below $17,000 while Ethereum was holding steady slightly under $1,300, down 1.2%.