- Wall Street swings between gains and losses
- US GDP beat expectations, growing 6.9% in 4Q21
- Gold price returns below $1800.00
- Tesla (TSLA.US) puts pressure on tech sector
Major indexes from Europe closed higher after volatile session. DAX rose 0.2% while other bourses recorded gains between 0.4% and 1.1%, partially thanks to solid quarterly results from major companies. Deutsche Bank stock surged over 4% after the company recorded its biggest profit since 2011 last year. French-Italian chipmaker STMicroelectronics posted upbeat earnings figures and announced plans to double its investments this year. On the flip side SAP stock tanked 6.7% after announcing that it will acquire a majority stake in privately held US fintech firm Taulia.
Wall Street has experienced increased volatility today. All three major indices launched today's session with 1.5% gains, however bulls failed to uphold momentum and sellers regained control. Currently Dow Jones is trading 0.20% higher, S&P500 is flat while Nasdaq fell 0.45%. On the corporate front, Tesla posted solid quarterly results however its stock plunged 8% after the carmaker warned supply chain issues could persist throughout 2022. As a result other electric vehicle makers came under pressure, with Rivian Automotive Inc stock fell 10% and is heading towards its lowest level since debut in November. Intel stock fell nearly 7% after the chipmaker posted a mixed outlook for the first quarter. McDonald's stock fell slightly after the fast food giant posted disappointing quarterly figures. Alphabet rose after CNBC reported the tech giant has formed a division to build a business around blockchain applications. Apple gained 0.50% ahead of the earnings release today after market close. On the data front, the US economy expanded a much better-than-expected 6.9% in Q4. The biggest upward contribution came from private inventories. Meanwhile initial jobless claims came in line with market estimates.
Downbeat moods prevail today in commodity markets amid a stronger dollar. The US 10-year Treasury fell slightly to 1.78% however it still remains elevated. As a result gold fell 1.5% to $1,793.00 level while silver plunged 3.5% and is testing $22.60 level as hawkish rhetoric from the Federal Reserve is not supportive for precious metals. WTI erased early gains and is trading 0.70% lower around $86.80 level while Brent fell below $88.40. Major cryptocurrencies took a hit during today's session. Bitcoin retreated to support at $36 000 while Ethereum continues to trade slightly above $2400 level.
Bitcoin - on the H1 interval one can observe the formation of a classic head and shoulders pattern, which usually heralds a downward move. Currently, attention should be paid to the neck line at $ 35,400. Should break lower occur, ongoing downward move may accelerate even further. Source:xStation5
