• The S&P 500 and the Dow Jones began the week on the wrong foot, the Nasdaq Composite rose.
  • The Covid-19 outbreak in China, Russia – Ukraine jitters, and Fed tightening weighs on US stocks.
  • WTI and gold are down amid a firm US dollar in the commodities complex.

US equities are trading mixed after Wall Street’s opened two hours ago. The losers are the S&P 500 and the Dow Jones Industrial Average, each losing between 0.15% and 0.49%, sitting at 4537.05 and 34,691.34, respectively. The gainer is the heavy-tech Nasdaq Composite gaining 0.25% at 14,787.13 around 15:33 GMT.

China’s Covid-19 outbreak, Russia – Ukraine woes dampened the market mood

The market risk appetite was affected by “fear” of a deceleration of the Chinese economy once China was hit by an outbreak of the Covid-19 Omicron variant. Also, the Russia – Ukraine conflict peace talks languished as Russia continued its offensive. At the same time, the greenback gains, underpinned by the Federal Reserve, as market participants expect a 50 bps increase in the May meeting by the US central bank, as US Treasuries yields keep advancing.

Aside from this, US equities sector-wise are led by Consumer Discretionary, Real Estate, and Utilities, up 1.25%, 0.73%, and 0.01% each. The main losers are Energy, Materials, and Financials, down 2.65%, 1.41%, and 1.31%, respectively.

The US Dollar Index, a gauge of the greenback’s value, sits at 99.224, up 0.42%, while the 10-year US Treasury yield eased off the highs, down three basis points at 2.462%.

Worth noting that parts of the yield curve inverted, with 5s at 2.636%, while the 30s at 2.600%, at some time during the day, a signal that triggers “recession concerns” in the market participants.

In the commodities complex, the US crude oil benchmark, WTI, is down 4.69%, trading at $107.39 BPD, while gold (XAU/USD) is down 1.05%, exchanging hands at $1936.85 a troy ounce, pressured by buck’s gains.

The US economic docket featured the US Goods Trade Balance for February, which came at $-106.59B better than the $107.57B January’s deficit, while the Dallas Fed Manufacturing for March rose by 8.7, lower than the 11 foreseen, and trailed February’s 14 figure.

Technical levels to watch

This article was originally published by Fxstreet.com.Read the original article here.


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