US stock markets: U.S stock indexes slid in yesterday’s session, dragged lower by Apple, energy, and bank shares, ahead of the first face-to-face peace talks between Ukraine and Russia in more than two weeks.
Oil majors Exxon and Chevron fell over 2% each after crude prices tumbled more than 7% on rising fears about weaker fuel demand in China due to a surge in COVID-19 infections. Apple Inc. slipped 0.6%, weighing the most on the S&P 500 and the NASDAQ indexes after a report said the company was planning to cut iPhone and AirPod output as rising inflation starts to weigh on demand for consumer electronics.
Strong economic data and gains in beaten-down growth stocks have powered Wall Street’s main indexes in recent days despite the Russia-Ukraine conflict and hawkish comments from Federal Reserve policymakers. Banks declined 2.3% after a recent run-up on expectations that the Fed could push harder and faster to tame inflation running at four-decade highs. Morgan Stanley downgraded U.S. banks, saying rate hikes have been priced in.
Dow Jones Industrial Average
The Dow Jones Industrial Average rose 0.27% to hit a new 1-month high. The best performers of the session on the Dow Jones Industrial Average were Microsoft Corporation, which rose 2.31% or 7.02 points to trade at 310.70 at the close. Meanwhile, Salesforce.com Inc. added 2.01% or 4.25 points to end at 215.28, and Walmart Inc. was up 1.78% or 2.55 points to 146.00 in late trade. The worst performers of the session were Chevron Corp, which fell 1.75% or 2.96 points to trade at 166.35 at the close. Dow Inc. declined 0.91% or 0.59 points to end at 64.11 and JPMorgan Chase & Co was down 0.74% or 1.05 points to 140.87.
NASDAQ 100
The NASDAQ index gained 1.31%. The top performers on the NASDAQ Composite were Hycroft Mining Holding Corporation which rose 81.25% to 2.32, DatChat Inc. which was up 61.45% to settle at 2.68, and Newegg Commerce Inc. which gained 43.41% to close at 7.40. The worst performers were Clever Leaves Holdings Inc. which was down 50.26% to 1.91 in late trade, Neuroone Medical Technologies Corp which lost 46.85% to settle at 1.18, and Amylyx Pharmaceuticals Inc. which was down 35.96% to 16.01 at the close.
Oil price - Crude Oil market, Brent Oil market
Oil prices today extended losses from the previous day as Ukraine and Russia headed for peace talks and on concerns about demand as China's financial hub of Shanghai shut down to curb a surge in COVID-19 cases. U.S crude futures were down 59 cents, or 0.6%, at $105.37after hitting a low of $103.46.
Ukraine and Russia were set to meet in Istanbul today for their first peace talks in over two weeks. Sanctions imposed on Russia after it invaded Ukraine have curtailed oil supply and sent prices to 14-year highs earlier this month. Russia calls its actions in Ukraine a "special operation" to disarm its neighbor. Oil prices are under pressure again on expectations for peace talks between Ukraine and Russia, which could lead to an easing or avoidance of Western sanctions on Russian oil. A successful ceasefire could also raise the prospect of reviving an Iranian nuclear deal.
Selling pressure grew on concerns that China may impose more restrictions in other places to contain the pandemic.
Precious and Base Metals - Gold price, Silver price, Palladium price
Gold prices were steady today as the U.S. dollar held firm and Treasury yields climbed, while market participants looked forward to Russia-Ukraine peace talks starting later in the day. Spot gold was unchanged at $1,921.74 per ounce, having fallen as much as 2.1% on Monday. U.S gold futures were down 0.9% at $1,922.60.
The lingering geopolitical risk is offering a little bit of support, but the big elephant in the room would be the U.S Federal Reserve moving into a more restrictive territory given the inflation angst that's hitting the markets right now. With the Fed completely moving into data dependence, I think a strong payroll number could strengthen the dollar, shoot yields a little bit higher and that could obviously work quite negatively for gold, but I don't think there's a real knockout below until the war premium gets completely evaporated.
The dollar index held firm near a three-week high hit in the previous session, making gold more expensive for other currency holders. U.S. benchmark 10-year yields hovered close to three-year highs, increasing the opportunity cost of holding non-yielding bullion. Ukraine said its top objective at the first face-to-face talks with Russia in more than two weeks, due to take place in Turkey on Tuesday, was to secure a ceasefire, although both it and the United States were skeptical of a major breakthrough.
Gold has resistance at $1,965 and $1,975 an ounce. Support lies at $1,917 and $1,910. Spot silver was up 0.1% at $24.86 per ounce, platinum was flat at $984.78 and palladium rose 2.6% to $2,291.28.
Traditional Agricultures - Corn futures, Wheat futures, Soybean futures
Wheat, corn, and soybean futures fell in yesterday’s trading session as worries over coronavirus cases in China weighed on commodity markets while grain traders also adjusted positions ahead of key U.S crop reports due later this week. The broad selloff in commodities continued into midday today, as fund managers react to massive shutdowns in China due to COVID, as well as to lingering hopes for peace talk success in Ukraine.
Ukraine and Russia were preparing for the first face-to-face peace talks in more than two weeks, but a senior U.S official said Russian President Vladimir Putin did not appear ready to make compromises to end the war.
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