May 20 financial breakfast: weak employment data dollar hit a two-week low, gold prices rose sharply to recover the 200-day average
Spot gold oscillated slightly higher at the beginning of Asian trading on Friday (May 20) and is currently trading near $1,844. Weak U.S. jobs data overnight heightened concerns about the economy, U.S. bond yields slipped and the dollar fell to a near two-week low of 102.65, helping gold prices rally back above its 200-day SMA of 1,839 and rise as high as near 1,850, with bullish signals significantly stronger in the short term. Oil prices rose in oscillating trade Thursday, rebounding from two consecutive days of losses, helped by a weaker dollar and expectations that a possible easing of sequestration measures in Asia would boost demand.
In the commodities close, July Brent crude futures settled at $112.04 a barrel, up $2.93, or 2.7 percent. June U.S. crude futures rose $2.62 to settle at $112.21 a barrel, or 2.4 percent. U.S. gold futures rose 1.4 percent to $1,841.30.
In the U.S. stock market close, the S&P 500 index fell 0.58 percent to close at 3,900.79 points. The Nasdaq fell 0.26% to 11,388.50 points, while the Dow Jones Industrial Average fell 0.75% to 31,253.13 points.
A look at major global market sentiment
U.S. stocks on Wall Street closed lower in choppy trading Thursday, with Cisco (Cisco System) plunging after giving gloomy earnings results and investors worried about inflation and rising interest rates.
Cisco plunged 13.7 percent after the networking equipment maker cut its 2022 revenue growth forecast, weighed down by its exit from Russia and a shortage of parts due to a new crown seal control in Asia.
Apple and chipmaker Broadcom (Broadcom) fell 2.5 percent and 4.3 percent, respectively, causing a drag on the S&P 500.
"The reality is that inflation is heating up and interest rates are climbing," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, "and we're going to face greater volatility until inflation starts to slow down, in our view, this will continue for most of the summer."
Twitter climbed 1.2 percent after news reports said company executives told employees that Musk's $44 billion acquisition deal is moving forward as expected and that they will not renegotiate the price.
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