[U.S. market]Stocks bottom out, tech concerns recede-dollar hits mid-129 – Bloomberg

The US stock market made up for the decline on the 25th.After the close of the previous day, Microsoft’s cloud business revenue slowed downOutlookIn the morning, the stock was sold, but closed well beyond the intraday lows.

The S&P 500 stock index ended almost unchanged. At one point, the stock fell by 1.7%. Tesla, which announced its financial results after the close, is also struggling in after-hours trading after the end of normal trading. Earnings and sales exceeded expectations, but cash flow fell short of expectations.

“The tug-of-war continues between the bulls and the bears,” said Mark Hackett, head of investment research at Nationwide. On the other hand, the market has several areas that are becoming attractive, which could lead to an upside break in the stock.”

Marco Kolanovic of JPMorgan Chase & Co. said stocks were rising at a time when the economy was headed for a downturn, which he said would set the stage for a sell-off.

Stocks rise to slowdown and ‘collision’, setting the stage for selling, says Kolanovic

Any recovery phase should be used to reduce exposure to the stock market, said Richard Saperstein of Treasury Partners. A slowdown in economic growth driven by U.S. monetary tightening and its impact on corporate earnings is likely to be priced into stocks over the next few months, he said. Looking ahead, margins continue to be at risk as inflation slows and economic growth slows.”

US Treasuries

US Treasuries rose, mainly short-term bonds. Rough movement continued throughout the day.

foreign exchange

The dollar index fell in the foreign exchange market. This comes on the back of speculation that the Fed will put an end to rate hikes in the near future. The Canadian dollar fell sharply for the first time in about a week. The Bank of Canada raised interest rates by 0.25 percentage points, as expected by the market, and indicated that it would hold off on raising interest rates to assess the impact of the rapid monetary tightening so far.

Bank of Canada raises interest rates by 25 basis points as expected;

Analysts at the Toronto-Dominion Bank, including Andrew Kelvin, said today’s rate hike was as expected and that the “more notable development” was the heightened hurdle for another rate hike later this year. .

The yen rose against the dollar, reaching the mid-129 level. Supported by escape demand. At one point, the price was 129.27 yen.

crude

Crude oil futures in New York remained unchanged. Expectations for a recovery in Chinese demand and concerns about the future of the US economy intertwined, leading to an uncertain direction during the day.

Bob Yawger, director of futures at Mizuho Securities, said economic concerns combined with rising U.S. oil inventories weighed on oil prices. Crude inventories rose by 533,000 barrels last week, according to Energy Information Administration (EIA) data. Although the increase was smaller than expected, inventories remained at the highest level since June.

March West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) closed at $80.15 a barrel, up 2 cents (less than 0.1%) from the previous day. London ICE North Sea Brent March delivery closed 1 cent, or less than 0.1%, at $86.12.

Money

The New York gold market continued to rise. The gold spot price dipped 0.9% in morning trading, but has since rebounded sharply. The market’s attention has turned to economic data that could hint at a rate hike trajectory for the US. On the 26th, the US Real Gross Domestic Product (GDP) for the fourth quarter of last year (October-December) was announced, and on the 27th, the Personal Consumption Expenditures (PCE) price index, which is used by the US Fed as an inflation indicator, was announced. be.

PCE price index expected to slow, no impact on Fed’s willingness to raise rates further

“Many investors are reluctant to make big bets in the face of this week’s U.S. growth data, while the pace of U.S. rate hikes slows,” said Gnanasekar Thiagarajan, director at Comtrens Risk Management Services. Expectations for the future are propping up the gold price.”

Gold futures for April delivery on the New York Mercantile Exchange (COMEX) closed at $1,959.40 an ounce, up $7.20, or 0.4%, from the previous day.