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Last Week’s Market Recap: Dow Jones Slips Amid Earnings Uncertainty and Inflation Concerns

In a week characterized by uncertainty in the financial markets, the Dow Jones Industrial Average faced downward pressure on Friday, October 27, primarily driven by a lack of clear direction in the release of corporate earnings reports. Additionally, investors were increasingly concerned that interest rates in the United States would remain elevated. This apprehension followed the release of data indicating a notable uptick in inflation.

The Dow Jones Industrial Average concluded the week at 32,417.59 points, representing a loss of 366.71 points or 1.12%. Meanwhile, the S&P 500 ended at 4,117.37 points, down by 19.86 points or 0.48%. In contrast, the Nasdaq Composite Index showed resilience, closing at 12,643.01 points, with an increase of 47.41 points or 0.38%.

Crude oil futures exhibited gains on Friday, with concerns over escalating tensions in Israel and Gaza potentially leading to a broader conflict. This uncertainty raised worries about the global supply of crude oil.

West Texas Intermediate (WTI) crude futures saw a rise of $2.33, equivalent to a 2.8% increase, closing at $85.54 per barrel, although they posted a weekly decline of 2.9%. Similarly, Brent crude futures increased by $2.55, or 2.9%, settling at $90.48 per barrel but experiencing a weekly decrease of 1.8%.

As geopolitical tensions persisted in the Middle East, gold contracts closed in positive territory on Friday, October 27, as investors continued to view gold as a safe-haven asset.

Gold futures inched up by $1.10, or 0.06%, closing at $1,998.50 per ounce. In contrast, silver fell by 2.10 cents, or 0.09%, settling at $22.887 per ounce. Platinum futures experienced a decrease of $3.20, equivalent to 0.35%, ending at $905.80 per ounce. Meanwhile, palladium saw a decline of $12.60, or 1.10%, settling at $1,130.20 per ounce.

The U.S. dollar weakened against major currencies in a basket, following the release of U.S. inflation figures that were in line with expectations. The dollar index against six major currencies in the basket decreased by 0.04% to 106.5580. The U.S. dollar weakened to 149.5070 yen on Friday, October 27, from 150.3720 yen on Thursday, October 26. In contrast, it strengthened against the Swiss franc, rising to 0.9015 Swiss franc from 0.8990 Swiss franc. The U.S. dollar also strengthened against the Canadian dollar, reaching 1.3877 Canadian dollars from 1.3813 Canadian dollars. It weakened slightly against the Swedish krona, declining to 11.1569 SEK from 11.1600 SEK. Meanwhile, the euro rose to $1.0568 on Friday, October 27, from $1.0560 on Thursday, October 26, and the British pound weakened to $1.2114 on Friday from $1.2135 on Thursday.

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