Positive U.S. economic data boosted the dollar

Overall market sentiment was weak during Thursday's session

By Farah Mourad | 23 May 2024

Market close
  • The manufacturing PMI rose to 50.9, and the services PMI rebounded to 54.8

  • Lower-than-expected initial jobless claims at 215,000

  • Gold continued its sell-off amid high yields

US Market

Despite earnings, sentiment on Wall Street remains weak. The rise in 10-year U.S. Treasury yields, nearing 4.5%, and the strengthening dollar have put pressure on risk assets, including stocks and cryptocurrencies.

The Kansas regional index outperformed expectations, contrasting with a weaker economic activity reading from the Chicago region. The PMI for manufacturing rose to 50.9 points, while the services sector PMI surprised by rebounding to 54.8 points, against expectations of 51.3.

Unemployment claims fell to 215,000 from the previous 223,000, indicating a still-tight U.S. labor market.

The dollar also benefitted from yesterday's hawkish FOMC minutes, which indicated that additional rate hikes remain a possibility if needed.

Commodity Markets

Oil prices are trading lower, reaching levels not seen in weeks. Gold, under pressure from a strong dollar and high yields, continued its sell-off for the third consecutive day, testing the $2330 per ounce area.