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Global Equities Rise, Rising Investor Risk Appetite Dents Dollar's Appeal

Summary

On Wednesday (May 18), the U.S. dollar index fluctuated within a narrow range at the beginning of the Asian market. It is currently trading around 103.32, not far from the one-and-a-half-week low of 103.22 set overnight. Global stock markets rose on Tuesday, and investors’ rising risk appetite weakened the dollar. Appeal. Spot gold is temporarily hovering around 1815, and the rebound of gold prices on Tuesday was blocked near the 200-day moving average, as Fed Chairman Powell and other officials continued to strengthen expectations of aggressive interest rate hikes, and rising stock markets also suppressed gold’s safe-haven demand. Oil prices fell 2% on Tuesday after hitting a seven-week high on news that the United States will ease some restrictions on the Venezuelan government.

U.S. stocks ended sharply higher on Tuesday, boosted by Apple, Tesla and other growth giants, as strong April retail sales data eased concerns about slowing economic growth.


Ten of the S&P's 11 major sector indexes rose, with financials, materials, consumer discretionary and technology all gaining more than 2 percent. Investors were cheered by data showing U.S. retail sales rose 0.9% in April as consumers bought cars as supplies improved and frequented restaurants.


Microsoft, Apple, Tesla and Amazon, which have been selling off recently, rose between 2% and 5.1%, pushing the S&P 500 and Nasdaq higher. Stocks rallied across the board on Tuesday after a weeks-long sell-off in U.S. stocks that last week saw the S&P 500 fall to its lowest level since March 2021. “The giants that investors tend to buy are basically down, either into correction territory or into a bear market,” said Sylvia Jablonski, chief investment officer at Defiance ETFs. “I think investors are looking for dips. I'm guessing today is a good time to do that."


The S&P 500 climbed 2.02% to close at 4,088.85. The Nasdaq rose 2.76% to 11,984.52 and the Dow Jones Industrial Average rose 1.34% to 32,654.59.


European stocks also rose across the board on Tuesday. As of the close, the Stoxx Europe 600 index rose 1.2% to 438.97 points; Britain's FTSE 100 index rose 0.7% to 7,518.35 points; France's CAC 40 index rose 1.3% to 6,430.19 points; Germany's DAX index rose 1.6% to 6,430.19 points 14,185.94 points.


Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.


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