US Close – Stocks Rebound in Volatile Trade, Crude Prices Crash, Gold Falls, Bitcoin Follows Nasdaq Rally

U.S. stocks were all over the place as investors priced a wall of worry that included a weakening consumer, lingering supply chain issues and growth issues, while some investors believed the stock selloff was nearing its end. end. Billionaire hedge fund manager David Tepper noted that he had covered his Nasdaq short position and expected 12,000 to be taken for the Nasdaq.

The bond market sell-off is clearly repositioning ahead of tomorrow’s inflation data, as the 10-year Treasury yield is well below yesterday’s high of 3.20%. Everyone expects the April inflation report to show a sharp deceleration confirming that the peak was reached in March.
Fears of much more aggressive Fed tightening returned tentatively after Cleveland Fed chief Mester said, “We’re not ruling out 75 forever.” Dollar and Treasury yields at the short end of the curve rallied on hawkish comments from Mester, but a sustained breakout did not occur.

Oil
Oil prices are in freefall as concerns over crude demand escalate as more companies become pessimistic about the near-term outlook and worry about the negative impact of rising oil prices. energy costs. The latest EIA forecast suggests a slowdown in output growth, implying that concerns about economic growth are mounting.
Everything over the past 48 hours appears to have turned bearish for oil prices as EU sanctions on Russian energy stall completely and the US dollar rallies on economic growth concerns. WTI crude has tentatively fallen below the $100 level, but energy traders won’t forget how tight the oil market is and how prices will react when the EU is able to secure sanctions on the oil market. Russian oil.

Gold
Gold fell slightly as the dollar continues to rally and the stock market shows signs of stabilizing. It looks like investors are ready to buy stocks but not gold if rates are stable. Gold remains in the danger zone if the $1830 level breaks as this could trigger another wave of technical selling.
If Treasury yields end up falling after tomorrow’s inflation report and gold doesn’t rally, some bullion investors could throw in the towel.

Bitcoin
Bitcoin’s fall below the $30,000 level didn’t last long, but the world’s largest crypto is still in danger. Too much institutional money will have a tight leash with their Bitcoin trades and they probably won’t tolerate a move below the $30,000 level. The Nasdaq rebound was good news for bitcoin investors, but Wall Street won’t feel fully confident to reinvest in stocks until the Fed and ECB can signal that they’ve got inflation under control. Aggressive central bank tightening has mostly been priced in for the Fed, but major European central banks can still signal that significantly tighter conditions are ahead.
Bitcoin faces short-term resistance at the $32,500 level, followed by the $35,000 region. On the downside, Bitcoin will attempt to hold the $30,000 level, with $28,500 providing major support.

This article is for general information purposes only. It is not investment advice or a solution for buying or selling securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for everyone. You could lose all your deposited funds.

With over 20 years of trading experience, Ed Moya is a senior market analyst at OANDA, producing up-to-the-minute cross-market analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. . His particular expertise covers a wide range of asset classes including currencies, commodities, fixed income, equities and cryptocurrencies. During his career, Ed has worked with some of Wall Street’s leading forex brokerages, research teams and information services, including Global Forex Trading, FX Solutions and Trading Advantage. Most recently, he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks, including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His opinions are endorsed by the world’s most renowned news agencies including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.

Ed Moya

Ed Moya

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