market news summary
A new wave of selling pushed European stocks to record their largest daily loss in two months on Wednesday. The sentiment was negatively affected by the lack of progress in negotiations to raise the US debt ceiling and a jump in core inflation in Britain. Luxury goods companies experienced further losses, and the European STOXX 600 index closed down 1.8%, marking its worst daily performance since mid-March. All European domestic markets declined as a result.
On a positive note, Nvidia shares saw a significant rise of approximately 25% during after-hours trading on Wednesday. The American technology company announced its quarterly business results for the first quarter of its fiscal year 2024. Nvidia’s adjusted earnings per share amounted to $1.09, surpassing the market’s expectations of 92 cents per share. The company also achieved revenues of $7.19 billion, exceeding expectations of $6.52 billion.
Dollar index (USDX)
The dollar index settled at 103.5 on Wednesday, slightly below Tuesday’s level of 103.65. This marked the highest level since March.
The crisis in Washington regarding raising the debt ceiling contributed to the rise of the dollar. However, there is concern that this crisis could potentially result in a debt default and push the country into a recession. Investors are also worried about the potential negative impact on the global economy.
The minutes of the Federal Reserve (Fed) meeting revealed a division among officials regarding the decision to tighten monetary policy by raising interest rates. Some members believed that further tightening was necessary, while others anticipated a slowdown in growth that would require a more gradual approach to tightening monetary policy.
Pivot Point: 103.60
| Resistance level | Support level |
| 104.00 | 103.40 |
| 104.20 | 103.00 |
| 104.75 | 102.50 |
Spot Gold (XAUUSD)
Gold futures experienced a decline in trading on Wednesday, May 24. The strength of the US dollar exerted pressure on gold prices, reducing the appeal of the precious metal as a safe haven asset amid concerns about the risks of the US government defaulting on its debts. Investors were also evaluating the minutes of the Federal Reserve meeting held in May.
By the end of trading, gold futures fell by 0.5%, equivalent to a decrease of $9.90, settling at $1,964.60 per ounce.
Pivot Point: 1966
| Resistance level | Support level |
| 1975 | 1947 |
| 1994 | 1937 |
| 2004 | 1918 |
Dow Jones Index (DJ30ft – US30)
In Wednesday’s session, US indices collectively closed lower as talks to raise the US debt ceiling continued.
The Dow Jones index experienced a decline of 0.77%, representing a decrease of 255 points. This marked the index’s fourth consecutive session of retreat, closing below 32,800 points and reaching its lowest level in nearly two months.
Pivot Point: 33950
| Resistance level | Support level |
| 33095 | 32720 |
| 33325 | 32575 |
| 33470 | 32345 |
US Crude (USOUSD)
Oil prices witnessed a 2% increase on Wednesday following a significant and sudden decline in US oil stocks. Speculation about potential new production cuts from the OPEC+ alliance further contributed to the rise in prices, supported by a warning issued by the Saudi Energy Minister to speculators.
Upon settlement, Brent crude futures rose by $1.52, equivalent to a 2% increase, reaching $78.36 per barrel. Similarly, US West Texas Intermediate crude experienced a $1.43, or 2%, increase, closing at $74.34 per barrel.
Pivot Point: 74.00
| Resistance level | Support level |
| 74.90 | 73.30 |
| 75.60 | 72.40 |
| 76.50 | 71.70 |
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