HomeForex MarketNasdaq 100 Sinks as Danger-Off Sentiment Dominates Markets, Commodities Hunch

Nasdaq 100 Sinks as Danger-Off Sentiment Dominates Markets, Commodities Hunch


  • U.S. shares stoop on risk-off sentiment, Nasdaq 100 falls as a lot as 2%
  • Development-linked commodities, reminiscent of oil and copper, additionally take a beating amid rising recession fears
  • U.S. greenback rallies throughout the board, EUR/USD briefly breaks beneath parity

Most Learn: US Greenback Value Motion Setups: EUR/USD, GBP/USD, USD/CAD, USD/JPY

Danger-off sentiment is dominating value motion on Thursday. Buyers are rising more and more fearful that the U.S. financial system is headed for a tough touchdown amid tightening monetary circumstances. Disappointing company earnings and poor revenue steerage from main U.S. banks reminiscent of JPMorgan Chase and Morgan Stanley are exacerbating the damaging tone, however the dangerous information does not finish there. Expectations that the Fed will elevate rates of interest by 100 foundation factors at its July assembly, following June’s disastrous inflation report, are making issues worse for dangerous property.

Towards this backdrop, U.S. shares are sharply decrease within the late morning commerce, with the Nasdaq 100 off by about 2%. Development-linked commodities are additionally taking a beating on considerations {that a} important slowdown will dampen demand for uncooked supplies, placing downward strain on their costs within the coming quarters. On this context, copper and oil costs are plunging greater than 3% on the time of writing, extending their sell-off that started final month.

In the meantime, the U.S. greenback is rallying throughout the board on the flight-to-safety transfer witnessed throughout markets, with the DXY index up about 0.9% to 109,00, its highest degree since September 2022. With merchants aggressively dumping high-beta currencies, the EUR/USD briefly broke beneath parity, falling as little as 0.9952 earlier than stabilizing across the 1.0000 deal with.

Wanting forward, recession angst isn’t more likely to abate any time quickly; in reality, the state of hysteria might improve within the coming days when U.S. firms launch their monetary statements in the course of the present reporting interval. Quarterly outcomes and forward-looking commentary may proceed to underwhelm expectations, reinforcing the notion that the U.S. financial system is headed for hassle. On this surroundings, threat property might battle, whereas the US greenback might reign supreme, particularly if volatility ranges choose up.



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