Investors are weighing data on consumer optimism and recent cautions from Fed leaders that the fight to contain rising inflation is not over. They are struggling to choose the direction of the market on Friday. The S&P 500 trimmed losses on Friday but battled for momentum amid a decline in semiconductors led by Nvidia and a rout in Lyft in response to lower outlook and an unexpected quarterly loss.
The S&P 500 was ended flat with 0.08% decline, while the Dow Jones rose 0.3%, or 92 points. Nasdaq sank 0.9%. Alphabet stabilized subsequent days of losses with only 0.65% in the red. the broader technology sector remained in the red as Nvidia’s decline worsened losses pulling down with 5.4% decline.
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NVIDIA dipped more than 3% as investors questioned the remaining uptrend potential for the company, which is up over 44% year-to-date. This happened on predictions that the spike in demand in Ai technologies will boost chip sales.
Dollar enjoys another green close
The US dollar inched higher on Friday, putting it on track for another good week despite caution ahead of the publication of vital inflation data the next week.
The Dollar Index, that monitors the dollar against a group of six major counterparts, traded 0.1% up at 103.207 at and is poised to score its second consecutive positive week. The dollar index enjoys a streak not seen since October.
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This week, the index has moved within a very narrow range as investors analyze financial data and evaluate comments from a number of Federal Reserve governors. Traders are looking for hints about the anticipated future pace of rate rises. The number of Americans submitting new claims for unemployment benefits climbed last week by a larger margin than anticipated, for the first day in six weeks, but remained relatively modest.
Oil briefly back at $80
Following Russia’s announcement that it will reduce output by 500,000 barrels daily at a time when traders anticipate a rise in energy demand due to China’s reopening, oil prices rose, providing support for the energy sector. The price of West Texas Intermediate rose above $80 per barrel following the news, however markets sounded WTI close $79.82, still 2.25% in the green.
Even before the news, crude oil was poised for a weekly rise as several optimistic factors emerged this week. Saudi Arabia hiked prices on the barrel exports to Asian nations, demonstrating confidence in the resurgence of China’s oil demand, despite supply interruptions in Turkey, Norway, and Kazakhstan.
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Gold futures for April delivery closed the week lower with a 0.18% decline at $1845.40. Silver futures for March closed 0.5% lower at $22.032. In comparison to last year’s record high, global consumption is projected to decline.
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