The Markets Are Awaiting US Consumer Price Index (CPI) Data This Week
market news update
US technology stocks have achieved significant gains since the beginning of the current year, supported by the AI-driven boom.
The market capitalization of the seven largest technology companies listed on the Wall Street Stock Exchange, namely Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta, has risen by about 60% this year, amounting to $11 trillion or approximately $4.1 trillion. These levels are about three times higher than the size of the German economy, which reached over $4 trillion by the end of 2022, according to data from the World Bank.
French central bank governor François Villeroy de Galhau rejected on Sunday, July 9, a proposal from some French economic experts to raise the European Central Bank’s inflation target, which currently stands at 2%.
Dollar index (USDX)
Data from the US Department of Labor on Friday showed that non-farm payrolls came in well below expectations last month, but the unemployment rate declined from its seven-month high, amid a strong increase in wages.
The dollar index fell to 101.90 and is currently trading at 102.15 dollars.
Pivot point: 102.25
| Resistance level | Support level |
| 102.55 | 101.60 |
| 103.15 | 101.25 |
| 103.50 | 100.65 |
Spot Gold (XAUUSD)
Gold continued its ascent in Friday’s trading on July 7 and ended the week with gains, as lower-than-expected non-farm payroll data in the United States raised doubts about the prospects of interest rate hikes again and their continuation beyond July.
Spot gold rose by 0.8% to $1,926.54 per ounce. Additionally, US gold futures climbed 0.9% to $1,932.5. On a weekly basis, gold increased by 0.27%.
Pivot point: 1923
| Resistance level | Support level |
| 1936 | 1911 |
| 1948 | 1897 |
| 1962 | 1885 |
Dow Jones Index (DJ30ft – US30)
US market indices declined on Friday, July 7, and closed the previous week on a low note as Wall Street struggled to shake off concerns that the Federal Reserve might begin raising interest rates again later this month.
The S&P 500 index lost 0.29% to close at 4,398.95, while the Nasdaq index dropped 0.13% to close at 13,660.72. The Dow Jones Industrial Average also decreased by 187.38 points or 0.55% to settle at 33,734.88 points.
Pivot point: 34035
| Resistance level | Support level |
| 34155 | 33830 |
| 34360 | 33710 |
| 34480 | 33505 |
US Crude (USOUSD)
Oil prices rose by about 3% on Friday, reaching their highest levels in nine weeks. Concerns over supply shortages and buying interest for technical reasons outweighed worries that interest rate hikes would slow economic growth and reduce oil demand.
Brent crude futures rose by $1.95, or 2.6%, to $78.47 per barrel at settlement. West Texas Intermediate (WTI) crude increased by $2.06, or 2.9%, to $73.86 per barrel. This marks the highest closing level for Brent crude since May 1st and the highest for WTI crude since May 24th. The benchmark crudes gained approximately 5% for the previous week.
Pivot point: 72.90
| Resistance level | Support level |
| 74.60 | 71.90 |
| 75.60 | 70.20 |
| 77.35 | 69.20 |
Risk Warning
This material provides real-time market analysis from contributing analysts. Please note that any views expressed in this material do not constitute operational advice. It is important to assess your risk tolerance and make independent trading decisions. STARTRADER holds no responsibility for any trading consequences that may arise from relying on the views expressed in this material.
