Market Recap
Markets kicked off the week on a strong note, with major U.S. indices closing higher on Monday, fueled by gains in technology stocks and easing Treasury yields. The Nasdaq Composite stood out with a 2.2% surge, marking its largest daily gain in seven weeks, while investors turned their attention to this week’s key inflation data releases to gauge the Federal Reserve’s next policy steps.
In corporate news, South Korean tech leader Samsung projected a 35% drop in Q4 2023 operating profits, defying market expectations even as semiconductor prices begin to recover. The announcement added to the cautious tone in Asia as global investors await CPI and PPI reports for clearer guidance on U.S. interest rate outlook.
Dollar Index (USDX)
Despite stronger-than-expected U.S. job growth in December, rate cut expectations have moderated. According to CME FedWatch, the probability of a March rate cut has dropped to 64%, down from 88% last week, as markets digest labor market resilience.
- Pivot Point: 102.05
- Resistance Levels: 102.30 • 102.60 • 102.85
- Support Levels: 101.75 • 101.45 • 101.15
Gold (XAU/USD)
Gold prices slipped on Monday to their lowest level in three weeks, weighed down by rising U.S. Treasury yields and waning expectations for a near-term Fed rate cut. The precious metal fell as investors looked ahead to this week’s U.S. inflation data for more clarity on the policy outlook.
- Spot Gold: Fell 0.9% to $2028.03/oz
- Gold Futures: Declined 0.8%, closing at $2033.5
- Pivot Point: 2030
- Resistance Levels: 2043 • 2059 • 2071
- Support Levels: 2015 • 2002 • 1986
Dow Jones & S&P 500 Performance
All three major U.S. indices closed higher on Monday as a pullback in bond yields boosted appetite for equities. The Dow Jones gained 217 points (+0.58%), logging its third straight advance, while the S&P 500 rose 1.4%, its first 1%+ gain in 2025.
The Nasdaq Composite soared 2.2%, achieving its biggest single-day rally in seven weeks, driven by tech optimism ahead of inflation data that could shift the Fed’s stance.
- Pivot Point: 37,765
- Resistance Levels: 38,065 • 38,240 • 38,540
- Support Levels: 37,590 • 37,290 • 37,115
U.S. Crude Oil (USO/USD)
Crude oil markets remained volatile, stabilizing on Tuesday after a 4% drop on Monday. The sell-off followed Saudi Arabia’s move to slash official selling prices, sparking renewed concerns over a supply glut. Traders are also weighing Middle East tensions and OPEC supply dynamics as they look for direction.
- Brent Crude: Rose $0.18 (+0.2%) to $76.30
- WTI Crude: Increased by $0.06 (+0.1%) to $70.83
- Pivot Point: 71.65
- Resistance Levels: 73.15 • 75.45 • 76.95
- Support Levels: 69.35 • 67.85 • 65.55
Risk Disclaimer
This content provides market commentary and analysis for informational purposes only. It should not be considered financial advice. Always evaluate your investment goals and risk tolerance before trading. STARTRADER is not liable for outcomes resulting from decisions made based on the insights shared in this report.