Daily Market Report

The three major U.S. stock market indexes ended on a positive note yesterday following the recent inflation data in the U.S. The consumer price index figures came out below expectations at 0.1% in May which showed a new slowdown in inflationary pressure. Investors think that while inflation is cooling down, the FED is likely to skip raising interest rates anytime soon. The focus today will be on the FOMC rate decision as the U.S. central bank is expected to leave interest rates unchanged at 5.25%. Market participants will be looking in today’s meeting for clues about the future monetary policy. As usual, high volatility is expected in all asset classes and especially during Jerome Powell’s press conference.
daily analytics

Looking at the recent movements in the U.S. stock market, the Dow rose 0.43% closing above the 34,000 psychological barrier for the second consecutive day. In the meantime, the Nasdaq and the S&P500 closed higher by 0.83% and 0.69% respectively reaching fresh 13-month highs. 
Both indexes marked their highest closing levels since April 2022. It is also important to note that the S&P500 is up more than 25% from its October lower which brings the index in a clear bull market.

On the other side, Gold failed for the fourth time to overtake the $1970 barrier as the selling pressure remains intact. As we mentioned in our previous reports, the gold trend is still neutral in the near term, and we will be waiting for a clear break either below the 1970 resistance or below the 1940-1935 support zone to confirm the next direction in the yellow metal.
Conversely, WTI crude managed to recover from yesterday’s sell-off closing higher above the $69 mark. Technically, Oil prices are still stuck inside a consolidation triangle as we can see in the chart below with $66.85 a barrel acting as the main support. Sellers need to wait for a break below this level to validate a new wave of decline, otherwise, oil is likely to stay supported in the coming hours.

Looking at other economic releases, the latest monthly reading of the UK GDP is expected to have risen from -0.3% up to 0.2%. Finally, later during the day, traders will be looking for employment figures from Australia with the unemployment rate set to remain unchanged at 3.7%.


Economic Analyst
Amine Hiani

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