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A Recap of Last Week’s Market Trends: Dow Jones Falls, Oil Surges, and the Dollar Weakens

The financial markets witnessed a series of notable events during the week ending on September 15th, 2023. From the Dow Jones Industrial Average experiencing a decline to oil prices surging to new highs, and the US dollar weakening against certain currencies, investors had their eyes on various developments. Here’s a summary of the key market movements from the past week:

Dow Jones Industrial Average Closes Lower

The Dow Jones Industrial Average concluded the week on a lower note, primarily due to concerns about weak consumer demand impacting chip stocks. Furthermore, the rise in US bond yields exerted pressure on major growth companies, including Amazon.

The Dow Jones Industrial Average closed at 34,618.24 points, marking a decline of 288.87 points or -0.83%. Meanwhile, the S&P 500 closed at 4,450.32 points, down 54.78 points or -1.22%, and the Nasdaq closed at 13,708.34 points, down 217.72 points or -1.56%.

Crude Oil Futures Reach New Highs

Crude oil futures witnessed an upward trajectory throughout the week, hitting a new high for the year. This surge marked the third consecutive week of gains and reflected ongoing concerns about tight oil supplies.

WTI crude oil futures rose by 61 cents, or 0.7%, to close at $90.77 a barrel. This closing level is the highest since November 7, 2022, and represents a 3.7% increase over the past week. BRENT crude futures also saw gains, rising 23 cents, or 0.3%, to close at $93.93 a barrel, reflecting a 3.6% increase over the week.

Gold Contracts Benefit from Dollar Depreciation

Positive movements were observed in the gold market as the dollar weakened. The depreciation of the dollar played a significant role in supporting the demand for gold contracts.

Gold futures surged by $13.40, or 0.7%, closing at $1,946.20 an ounce. Over the past week, gold witnessed a modest increase of 0.2%. Additionally, silver futures rose by 39.20 cents, or 1.70%, settling at $23.386 an ounce. Platinum futures showed impressive gains, rising $18.40, or 2.02%, to close at $929.50 an ounce. However, palladium experienced a slight dip, falling $2.10, or 0.2%, to settle at $1,252.70 an ounce.

US Dollar Weakens Amid Consumer Confidence Index Drop

The US dollar saw mixed movements against various currencies. Notably, the dollar weakened against the euro basket following a drop in the US consumer confidence index. Investors are now anticipating that the Federal Reserve (Fed) will maintain interest rates at its upcoming meeting.

  • The dollar index against six major currencies in the basket fell by 0.06% to 105.3192.
  • The dollar weakened against the euro and the Swedish krona, while strengthening against the yen, pound, Swiss franc, and Canadian dollar.
  • The US dollar rose to 147.8570 yen on Friday, up from 147.4410 yen on Thursday.
  • The dollar also rose to 0.8972 Swiss franc from 0.8962 Swiss franc.
  • Against the Canadian dollar, the US dollar strengthened to 1.3516 from 1.3509 Canadian dollars.
  • However, the US dollar weakened to 11.1821 Swedish krona from 11.2022 Swedish kronor.
  • The euro made gains, rising to US$1.0660 on Friday from US$1.0636 on Thursday.
  • Meanwhile, the pound weakened to $1.2384 from $1.2402.

These market movements from the past week provide insights into the evolving dynamics of the financial world. Investors and analysts will continue to closely monitor these trends as they navigate an ever-changing economic landscape.

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