Stock Decline, and the Dow Jones Loses This Year’s Gains

MARKET NEWS SUMMARY

US indices closed sharply lower in Tuesday’s session, pressured by the increasing investor sentiment that the Fed will keep interest rates high for a longer period after data showed a recovery in business activity in the United States in February.

The Dow Jones index fell by about 700 points in the first sessions of this week, recording its biggest daily loss since last December 15, thus, losing all its gains of 2023.

European stocks fell at the end of the trading session on Tuesday, February 21, amid a follow-up to the results of companies’ business and economic data. Now, attention is directed toward the minutes of the Fed’s meeting.

At the end of the session, the STOXX600 index fell by 0.19% to 463 points, while the German DAX fell by 0.52%, recording 15,397 points.

Dollar index (USDX)

The dollar is moving at its highest level in six weeks ahead of the announcement of economic data that may help determine the direction of interest rates in the future.

Important data for the US labor market and the continuation of inflation at high levels raised expectations of continuing to raise US interest rates, which supported the dollar’s rise this month.

The dollar index is heading towards recording an increase for the fourth week in a row and has risen 1.7% since the beginning of February, but it has settled at about 104, retreating from its highest level in six weeks, which it recorded on Friday, at 104.67.

Pivot Point: 103.98

Resistance level	Support level
104.28	103.79
104.48	103.48
104.98	102.98

British Pound (GBPUSD)

The Pound stabilized near its important levels at 1.2100 after getting positive support yesterday due to the positive data in Britain, and today investors are awaiting the minutes of the Fed’s meeting to monitor the Fed’s plan during the coming months.

Pivot Point: 1.2080

Resistance level	Support level
1.2135	1.2050
1.2155	1.2030
1.2180	1.1950

Spot Gold (XAUUSD)

Gold prices fell at the settlement of trading yesterday, Tuesday, February 21, due to expectations of more interest rate hikes by the Fed and the dollar gaining more strength.

Upon settlement, gold futures fell by 0.4% to $1842.5 an ounce, and the yellow metal’s gains shrank since the beginning of this year to only 0.9%.

Attention is directed towards the minutes of the Fed’s meeting, which is scheduled to be issued today, Wednesday, as the US Central Bank decided during its meeting at the beginning of this month to raise interest rates by about 25 basis points to a level ranging between 4.5% and 4.75%.

Pivot Point: 1,836

Resistance level	Support level
1,842	1,828
1,849	1,822
1,859	1,809

US Crude oil (USOUSD)

Oil prices fell at the settlement of yesterday’s trading session, Tuesday, February 21, amid concerns about the future growth of the global economy, which overshadowed the decline in supplies.

Upon settlement, Brent crude fell by 1.2% to $83.05 a barrel, and US West Texas Intermediate crude fell by 0.2% to $76.16 a barrel.