Market News Summary
US retail sales rose less than expected in April, but still showed strength, which resulted in the dollar gaining value and pushing the 10-year Treasury yield to a two-week high.
On Tuesday, May 16, Tesla CEO Elon Musk expressed his belief that the Federal Reserve (Fed) has been too slow in raising interest rates and is likely to gradually reduce them in the coming months.
Musk also expressed concern about the Fed’s decision-making process, stating that it operates over a lengthy timeframe. He noted that the Fed has been slow to increase interest rates and anticipates a similar slowness in lowering them.
In spite of a decrease in demand for mortgages, the total debt of American households has surpassed $17 trillion for the first time in US history. New mortgage commitments reached their lowest level since the second quarter of 2014.
Dollar index (USDX)
The US dollar index has once again risen to reach the level of 102.490, representing a 0.21% increase.
This surge can be attributed to comments made by Loretta Mester, a member of the Federal Reserve, who suggested that current interest rates are not sufficiently tight and hinted at the necessity of raising rates. Her statement has bolstered the strength of the US dollar.
Pivot Point: 102.30
| Support level | Resistance level |
| 102.10 | 102.60 |
| 101.80 | 102.80 |
| 101.35 | 103.30 |
Spot Gold (XAUUSD)
Gold futures experienced a decline in trading on Tuesday, May 16, following the release of US economic data and hawkish statements from Federal Reserve officials. These factors increased the likelihood of a delay in interest rate cuts. Additionally, traders were keeping a close eye on the US debt ceiling negotiations.
At the close of trading, gold futures recorded a drop of less than 1.5%, equivalent to $29.70, settling at $1,993 per ounce. This decline pushed the price below the $2,000 level for the first time in two weeks.
Pivot Point: 1997
| Support level | Resistance level |
| 1990 | 2009 |
| 1976 | 2015 |
| 1965 | 2029 |
Dow Jones Index (DJ30ft – US30)
Wall Street’s major indices closed lower on Tuesday after a disappointing forecast from Home Depot and lower-than-expected US retail sales data for April indicated softer consumer spending, while uncertainty over interest rates and debt ceiling negotiations weighed on sentiment.
According to preliminary data, the Standard & Poor’s index closed down 26.39 points, or 0.64%, to 4109.89 points, the Nasdaq index fell 21.89 points, or 0.18%, to 12343.05 points, and the Dow Jones Industrial Average fell 335.01 points, or 1.00. %, to 33013.59 points.
Pivot Point: 33170
| Support level | Resistance level |
| 32945 | 33310 |
| 32800 | 33530 |
| 32440 | 33900 |
US Crude (USOUSD)
On Tuesday, oil futures experienced a decline as a result of disappointing economic data from China and the United States, which offset the positive impact of the International Energy Agency raising its forecast for global demand growth.
During settlement, Brent crude futures dropped by 32 cents, settling at $74.91 per barrel. Similarly, US West Texas Intermediate crude fell by 25 cents, reaching $70.86 per barrel.
Pivot Point: 70.90
| Support level | Resistance level |
| 70.00 | 71.35 |
| 69.55 | 72.25 |
| 68.25 | 73.55 |
This material provides real-time market analysis from contributing analysts. Please note that any views expressed in this material do not constitute operational advice. It is important to assess your risk tolerance and make independent trading decisions. STARTRADER holds no responsibility for any trading consequences that may arise from relying on the views expressed in this material.
