Daily summary: US stocks slip as investors weigh Powell remarks and labour market data

7:59 PM 8 March 2023
  • European finished today's session slightly higher, with DAX 40 adding 0.46% and FTSE 100 gaining 0.13%. German industrial production growth beat expectations in January, while retail sales surprised on the downside.
  • Major Wall Street indices resumed downward move in the evening, with Dow Jones trading 0.70% lower, while S&P500 and Nasdaq fell 0.25% and 0.15% respectively as traders digested latest data from the labour market and hawkish remarks from FED Chair Powell.

  •  JOLTS fell by 410K to 10.824 million in January from an upwardly revised 11.234 million in December, compared to analysts’ estimates of 10.5 million.

  • ADP report showed that the private sector in the US unexpectedly created 242K jobs in February, well above an upwardly revised 119K in January and market forecasts of 200K. Both reports point to a still-tight US labor market and raised expectations that FED will remain hawkish.

  • Fed Chair Jerome Powell during the second day of testimony in front of Congress said that the central bank would likely need to raise rates more than expected in response to solid employment and inflation data. Powel said that the size of the next interest rate increase is dependent on upcoming jobs and inflation data.

  • Markets are now priced for a 70% chance of a 50 basis point rate hike in March, according to CME’s FedWatch tool, up from a 30% chance a day ago. 

  • OIL. WTI bounced off major support at $76.10, however is still trading 1.3% lower despite US crude oil inventories unexpectedly dropping by 1.694 million barrels in the week ended March 3rd, compared with market expectations of a 0.395 million barrel increase, the latest EIA report showed.

  • Precious metals are trading slightly higher around recent lows. Gold pulled back to $1815 after an unsuccessful attack on the $1825 mark, while silver hovers near crucial $20.00 support as tight supplies limited the decline. Silver inventories at the LBMA and COMEX remaining at low levels. Additionally, new data revealed reserves by major producer, Peru, dropped by 22,000 tonnes to 98,000 in 2022.

  • USDCAD pair surged above resistance at 1.3800 as BoC kept the rate unchanged at 4.5% in March, as widely expected, and stated that it should keep them at the current level should economic conditions develop broadly in line with expectations.

  • EURUSD pulled back to major support at 1.0535 as fresh ADP data strengthened the greenback, however buyers managed to regain control later in the session.

  • Wheat futures dropped to the lowest in 18 months, as the USDA’s WASDE report confirmed the supply from the world’s top producers - Russia and Ukraine is set to increase.

  • Major cryptocurrencies moved lower. Bitcoin fell below support at $22,000 while Ethereum is testing a crucial support zone around $15550.

Markets price in further hikes from the FED in the upcoming months. Source: Bloomberg

US30 again pulled back towards crucial support at 32620 pts, which is marked with previous price reactions and 200 SMA (red line). Should break lower occur, next support to watch can be found at 31750 pts. Source: xStation5

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app
Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence