It has been an eventful week, with major moves in the Stock market, Commodities, and Forex.
Tesla's earnings report has caused a sharp decline in NASDAQ, while Bank of America's Q1 results beat expectations. In the commodities market, crude oil is struggling amid fears of a global slowdown and rate hikes by central banks. Meanwhile, tensions between the US and China are putting pressure on the $AUD/USD pair.
Read on for a comprehensive roundup of the latest economic news!
Tesla's earnings’ report triggers a selloff, sending NASDAQ on a decline
The price of the NASDAQ is primarily influenced by the most recent earnings report from Tesla. The earning report has sparked a strong selloff, causing the stock price to decline by more than 6% outside of trading hours in addition to yesterday’s 2% decline. Overall, the stock has decreased by 8% in 24 hours.
The price of the NASDAQ is mainly trading within an extended price range between $12,967 and $13,130. If the price breakouts of this range, traders are potentially using the breakout to indicate a stronger decline.
Trading involves significant risk of loss.
Bank of America reports higher-than-expected Q1 results
Bank of America reports higher-than-expected Q1 results, driven by increased net interest income and rising rates.
The bank's earnings were 94 cents per share, beating the expected 82 cents, and revenue reached $26.39 billion, exceeding the anticipated $25.13 billion. Despite these results, the bank's stock fell by around 1%.
CEO Brian Moynihan highlighted the bank's "decade-long commitment to responsible growth" as a factor in providing stability amidst changing economic environments.
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Crude oil eyes more downside as global central banks prepare for a fresh rate hike cycle
The oil price is struggling to defend the immediate support of $77.00 as fears of a global slowdown have deepened.
The black gold has surrendered most gains generated after OPEC+ announced surprise production cuts. A further decline in the oil price will expose it to the crucial support of $75.60. Deepening fears' slowdown in the global economy, knowing that central banks are preparing for a fresh rate hike cycle to arrest stubborn inflation, will put a big dent in the overall oil demand.
Along with the Federal Reserve, the European Central Bank and the Bank of England are expected to hike rates further to bring down persistent inflation in their respective economies.
Trading involves significant risk of loss.
$AUD/USD remains pressured toward 0.6700 amid US-Sino tensions
The AUD/USD broke above 0.6740 and strengthened on Thursday, but the run was capped by 0.6770. A weaker US Dollar boosted the pair while on the flip side the Australian Dollar was among the top performers on Thursday.
The Greenback weakened after the release of US economic data (Jobless Claims and Philly Fed) and amid lower US Treasury yields. The momentum in AUD/USD eased after it reached 0.6770, as equity prices on Wall Street dropped. A cautious sentiment in markets is keeping the upside limited.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
