US Stock Markets Close Lower on Thursday
The US stock markets closed lower on Thursday, with the Dow Jones Industrial Average calculated at 44,882.13, a 0.38% increase from the previous trading day.
Minutes earlier, the broader S&P 500 had reached around 6,070, a 0.5% gain, while the technology-heavy Nasdaq 100 had calculated to around 21,510, also a 0.5% increase.
CMC Markets analyst Konstantin Oldenburger commented on the developments, saying that the Federal Reserve’s pause on interest rates on Wednesday was “a logical step, considering the different economic conditions. The US economy is still running, albeit at a slower pace in the fourth quarter. However, with 2.3% growth on the year, it’s still a solid performance, far outpacing the European economy.”
Oldenburger added that, after the European Central Bank and the Federal Reserve both cut interest rates by a total of one percentage point last year, their paths may now diverge. “While investors can still look forward to at least one more rate cut in the US, the ECB may still turn the monetary policy screw by up to four more percentage points this year” he predicted.
The European currency was weaker on Thursday evening, with one euro costing 1.0394 US dollars and one dollar worth 0.9621 euros.
Gold prices, on the other hand, enjoyed a significant gain, with one troy ounce selling for $2,796, a 1.3% increase, equivalent to €86.50 per gram.
Oil prices, meanwhile, rose, with a barrel of Brent crude selling for $77.07 at around 22:00 CET, a 0.6% or 49-cent increase from the previous day’s close.