Home Featured US Close: Stocks fluctuate, Fed stays hawkish, Dollar posts weekly gain, Oil’s bad week, Gold declines, Cryptos surprisingly find support

US Close: Stocks fluctuate, Fed stays hawkish, Dollar posts weekly gain, Oil’s bad week, Gold declines, Cryptos surprisingly find support

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US Close: Stocks fluctuate, Fed stays hawkish, Dollar posts weekly gain, Oil’s bad week, Gold declines, Cryptos surprisingly find support


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Stocks in the US are acting like they’ve just eaten from a 12-pound turkey.  Today’s market moves were uninspiring as we did not learn anything new.  After existing home sales dropped for the ninth consecutive month, the housing market is now in recession.  The Fed remains united in its hawkish stance. Fed’s Collins noted that a 75 basis-point rate increase is still on the table as there is no clear evidence that inflation is coming down. Despite this week’s steady hawkish tones from policymakers, Wall Street remains convinced that they will pivot and probably cut rates at some point around the end of next year.

The bear market rally was stubborn and we need to send a clear signal to sellers that inflation will be persistent for them to take control.

FX

The dollar didn’t do much today but is still poised for its first gain in five weeks.  The 10-year Treasury yield rose by 4.8 basis points, to 3.814%. This is still a far cry from the peak of around 4.2% seen just a few weeks ago.

Oil

Oil prices dropped sharply this week due to technical selling and crude demand destruction.  It was a bloodbath for energy bulls, as China’s COVID situation continues to head in the wrong direction and US economic activity continues to…



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