This week has been marked by significant market movements, with US stock indices experiencing their steepest decline since 2022 due to disappointing earnings from major tech players. Ford Motor also faced a challenging period, posting its worst daily decline since 2008 amid investor concerns. Meanwhile, gold is showing signs of recovery, and the Dollar Index is testing key support levels.
*It is important to remember to assess your financial situation and risk tolerance, before engaging in copy trading. Past performance does not guarantee future success.
US markets suffer worst day since 2022 as Tesla and AI stocks fall
US stock indices experienced their steepest decline in over 18 months, following disappointing overnight earnings from major players Tesla and Alphabet that intensified the tech sector sell-off.
The blue-chip S&P 500 dropped 2.3%, marking its worst day since December 2022, while the tech-heavy Nasdaq Composite fell 3.6%, its most significant decline since October 2022. Major tech stocks, including Nvidia, Microsoft, Apple, and Tesla, led the downturn. Tech and AI stocks have been the main drivers of market gains this year.
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Ford shares post worst day since 2008
Ford Motor is leading a decline in major U.S. automotive stocks this week amid disappointing results and investor doubts about future performance.
Ford's shares closed at $11.16 on Thursday, marking an 18.4% drop — the stock’s worst daily decline since 2008 and the second-worst performer among S&P 500 companies. This decline followed the company's miss on Wall Street's earnings expectations, exacerbated by ongoing warranty issues.
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Gold sticks to modest recovery gains
Gold prices are showing signs of recovery, breaking a two-day losing streak and bouncing back from a two-week low hit the previous day. The shift comes after a positive US GDP report released on Thursday, which suggested the economy is resilient and showed slower inflation for Q2 2024. This stability has alleviated some market uncertainty, prompting a shift away from the traditional safe-haven appeal of gold.
For the recovery to gain traction, gold prices will need to stay above the recent swing low of around $2,353. A break below this level could signal further decline, extending the recent correction from last week’s all-time peak.
Trading involves significant risk of loss.
Dollar Index recovers after testing key support
The Dollar Index tested a low of 104.02 yesterday but has since recovered, though it still needs to climb above 104.50 to avoid a potential further decline below 104. Meanwhile, the EUR/USD pair is encountering interim resistance at 1.0870/80. A breakthrough beyond this level could push the pair higher towards 1.09/1.0950.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
