The markets have been in flux this week, with positive earnings reports from technology companies being offset by concerns about the banking sector. Despite higher-than-expected earnings and revenue from companies like Meta, the NASDAQ, Dow, and SNP500 have all declined.
Meanwhile, Gold prices continue to teeter in a bull-bear tug-of-war, and $USD/JPY has dipped below 134.00 ahead of the Bank of Japan's policy announcement.
What's next for the markets? Dive into our weekly analysis to find out!
Positive earnings across the board, but banking woes continue
Technology companies continue to release positive earnings reports. For example, Meta is the third technology-based company to release their quarterly earnings report this week. Similar to Microsoft and Alphabet, the company released higher-than-expected earnings and revenue. However, the NASDAQ, Dow Jones, and SNP500 have all declined over the past 2-days regardless of mainly positive earnings.
This has been bought about by First Republic Bank, confirming depositors have withdrawn slightly more than $100 billion.
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Tesla's market cap falls below $500 billion
Tesla ($TSLA) continues to struggle in the market as shares fell 4.3%, marking the lowest since January 25th and dragging the company's valuation below $500 billion.
The company's shares have lost over $84 billion from its market capitalization over the last five trading sessions since posting disappointing Q1 earnings.
Investors are increasingly concerned about Tesla's price-cutting strategy, which could significantly impact the company's profit margins. Elon Musk indicated that Tesla would continue to lower prices to attract more buyers, causing analysts to cut their price targets amid fears over its valuation.
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Gold prices continue to teeter in a bull-bear tug-of-war
As gold prices continue to hover around the $2,000 range, investors are closely watching the US Core PCE Price Index for signs of fresh market impetus. The precious metal is currently trading within a rectangle pattern, with bulls needing to push past the 21-Day Moving Average barrier to initiate sustained upside.
On the other hand, failure to do so could put the range lows near $1,970 back at risk. The question remains, will gold continue to be a safe haven for investors amid market uncertainty, or will the ongoing corrective consolidation lead to a sustained downtrend?
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$USD/JPY dips below 134.00 ahead of BoJ policy announcement
As anxious trading grips the market ahead of the Bank of Japan's policy announcement and the US Core PCE Price Index, USD/JPY has dropped back below the 134.00 level. Despite a rebound in the US dollar, the economic growth report and the BoJ's dovish stance continue to weigh on the Japanese yen.
While a recovery in global risk sentiment has helped undermine the JPY, the key question remains whether the USD/JPY pair can capitalize on the move or if bulls will opt to move to the sidelines ahead of the crucial BoJ policy meeting. Investors will be watching closely for any hints of a shift in policy, as well as the impact of the US Core PCE Price Index on the USD.
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This concludes our weekly recap. Have a great weekend and see you next week! 👋
