Daily Summary: US500 falls below 5000 points, and gold below 2000 USD

Wall Street records declines of around 1.40-1.50%. The US500 falls back below the 5,000 points level, and the US100 below 18,000 points. The dollar appreciates and is the strongest currency among the G10 currencies.

The dollar gains after today's CPI report and is currently the strongest currency among the G10. The Dollar Index (USDIDX) gains over 0.70% and breaks above key levels.

Today's US inflation data came out above expectations, acting as a catalyst for a needed market correction. The data showed an average consumer price increase of 3.1% year-over-year and 3.9% year-over-year excluding energy and food prices.

Directly after the publication, expectations related to the first Fed rate cuts fell to just under 100 basis points in 2024 compared to 125 basis points before the report. Thus, the first interest rate cut was moved from June to July, and a potential cut in May is now practically ruled out.

Tuesday's session in European stock markets brought a slowdown in the bullish momentum observed during the last sessions. Nearly all indexes from the Old Continent closed with intraday losses. The German DAX is down by 1.00%, French CAC40 by 1.08%, and Italian FTSE MIB by 1.18%.

The USDJPY pair broke above the psychological barrier of 150.00 for the first time since November 2023. At the time of publication, the rate is gaining nearly 1.0% to 150,700.

Despite better quarterly results, Coca-Cola (KO.US) shares are down 0.70% in today's session. The company beat sales estimates, and earnings were in line with expectations. Higher prices helped the company offset lower sales volumes in North America.

Precious metals are also falling. The biggest drops are seen in palladium and silver. Meanwhile, gold dips 1.80% and falls back below the 2,000 USD per ounce level.

In the cryptocurrency market, we observe a slight pullback after the CPI publication. Bitcoin's price fell below 50,000 USD and even 49,000 USD. However, losses are currently somewhat minimized, and Bitcoin's price has returned above 49,000 USD, recording a drop of about 1.60%.