US stock market: Global shares rose on Friday as Wall Street rallied to end a volatile week of trading, while oil jumped 4% on the back of record-high U.S gas prices. Global markets and U.S. stocks were down sharply most of the last week as investors grew anxious about the possibility of a recession.
The S&P 500 index is off nearly 20% from its all-time high in January and was close to a bear market on Thursday. But investors' fears over whether U.S Federal Reserve Chair Jerome Powell can accomplish a "soft landing" - bringing inflation down while keeping the U.S economy growing - appeared to ease at least temporarily on Friday. Despite Friday's gains, the S&P 500 and the NASDAQ posted their sixth consecutive weekly loss, and the Dow notched its seventh consecutive weekly dip.
Economic Calendar
Stocks were ready to rebound as some investors remain hopeful the Fed will deliver a soft landing, while others are ready to buy the dip. Oil prices jumped 4% as U.S gasoline prices jumped to a record high and China looked ready to ease pandemic restrictions.
Dow Jones Industrial Average
The Dow Jones Industrial Average added 1.47%. The best performers of the session on the Dow Jones Industrial Average were Nike Inc., which rose 4.74% or 5.11 points to trade at 113.01 at the close. Meanwhile, Salesforce.com Inc. added 4.05% or 6.49 points to end at 166.91 and American Express Company was up 3.58% or 5.48 points to 158.75 in late trade. The worst performers of the session were Johnson & Johnson, which fell 0.57% or 1.02 points to trade at 176.85 at the close. Amgen Inc. declined 0.54% or 1.32 points to end at 243.40 and Merck & Company Inc. was down 0.46% or 0.42 points to 90.41.
NASDAQ 100
The NASDAQ index gained 3.82%. The top performers on the NASDAQ Composite were ShiftPixy Inc. which rose 154.87% to 0.51, Polarityte Inc. which was up 44.51% to settle at 0.21 and Veru Inc. which gained 43.96% to close at 13.00. The worst performers were LiqTech International Inc. which was down 45.36% to 0.50 in late trade, Brilliant Earth Group Inc. which lost 33.63% to settle at 4.48 and Tenon Medical Inc. which was down 26.41% to 6.52 at the close.
Oil price - Crude Oil market, Brent Oil market
Oil prices rose about 4% on Friday as U.S gasoline prices jumped to a record high, China looked ready to ease pandemic restrictions and investors worried supplies will tighten if the European Union bans Russian oil. U.S West Texas Intermediate (WTI) crude rose $4.36, or 4.1%, to settle at $110.49. That was the highest close for WTI since March 25 and its third straight weekly rise.
U.S gasoline futures soared to an all-time high after stockpiles fell last week for a sixth straight week. That boosted the gasoline crack spread - a measure of refining profit margins - to its highest since it hit a record in April 2020 when WTI finished in negative territory. Oil prices have been volatile, supported by worries a possible EU ban on Russian oil could tighten supplies but pressured by fears that a resurgent COVID-19 pandemic could cut global demand. In China, authorities pledged to support the economy and city officials said Shanghai would start to ease coronavirus traffic restrictions and open shops this month.
Precious and Base Metals - Gold price, Silver price, Palladium price
Gold prices edged down in choppy trading today as strong dollar-hurt demand for the greenback-priced metal set it on course for a more than three-month trough hit in the previous session. However, a fall in benchmark U.S. 10-year Treasury yields limited losses in zero-yield gold, helping keep prices above the key psychological support level of around $1,800 per ounce.
Spot gold was down 0.1% at $1,808.61 per ounce. U.S gold futures dipped 0.2% to $1,804.80. With $1,800 being such a big round number, it's natural for it to provide some level of support as some (traders) try to be brave and buy a dip, whilst others close out profitable shorts. Marking a fourth straight weekly decline, gold prices on Friday fell more than 1% to $1,798.86 per ounce, before closing at $1,811.15. But it's not looking great for gold bugs right now. Even if we do see a bounce from $1,800, the momentum clearly favors a further downside.
Concerns around global growth helped the dollar start the week just off a 20-year high against its peers, making rival safe-haven gold less attractive for buyers holding other currencies. Inflation will need to move lower for "several months" before Federal Reserve officials can safely conclude it has peaked, Cleveland Fed President Loretta Mester said on Friday, adding she would be ready to consider faster rate hikes by September Fed meeting if the data does not show improvement.
Although seen as an inflation hedge, gold is sensitive to rising U.S. short-term interest rates and bond yields, which raise the opportunity cost of holding bullion. Spot silver eased 0.2% to $21.03 per ounce, platinum gained 0.1% to $939.70, and palladium rose 0.6% to $1,955.59.
Traditional Agricultures - Corn futures, Wheat futures, Soybean futures
Wheat futures set contract highs on Thursday as the U.S. Department of Agriculture (USDA) slashed its production forecast for the variety that is grown in the U.S. Plains and used to make bread. USDA, in a monthly crop report, projected hard red winter wheat output at 590 million bushels, down from its April estimate of 749 million and below analysts’ expectations for 685 million. Hot weather has stressed the crop, with drought affecting about 69 percent of U.S. winter wheat areas as of May 3.
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