Markets Retreat as Economic Data Looms; Oil Slumps, Gold Drops, and Earnings Move Stocks

Image Source : Krish Capital Pty Ltd

Index Update:  U.S. stock futures declined, with the Dow, S&P 500, and Nasdaq all down about 0.4%, as concerns about the economic outlook and anticipation of key data releases—PPI, retail sales, and industrial production—weighed on sentiment. Investors also awaited remarks from Fed Chair Powell for clues on monetary policy direction. In premarket trading, Apple shares fell 1.1% after President Trump opposed the company producing U.S.-market devices in India. UnitedHealth dropped nearly 5% amid news of a criminal probe into potential Medicare fraud, while Walmart gained 1.5% on stronger-than-expected earnings.

Market Movers:  On Wednesday, the top gainers were Septerna, Inc (+60.77%), followed by bluebird bio, Inc (+50.15%). On the contrary Global-E Online Ltd (-22.15%) and Aurora Innovation, Inc (-17.21%) declined the most the same day.

Commodities Update:  Oil prices dropped over 3%, with WTI falling below $61 and Brent below $64 per barrel, as oversupply concerns pressured the market. Expectations of increased Iranian oil supply due to potential sanctions relief, Saudi Arabia's support for US-Iran nuclear talks, and a surprise build in US crude inventories all weighed on sentiment. Despite OPEC trimming its 2025 non-OPEC+ supply growth forecast, its ongoing plans to boost output continued to dampen prices. Gold extended losses, dropping to around $3,140 per ounce and hitting a five-week low amid easing global trade tensions and reduced demand for safe-haven assets. Progress in US-China trade talks, stabilizing geopolitical risks, and hopes of broader global trade agreements diminished risk aversion. While weaker US inflation data bolstered expectations for Fed rate cuts, traders now await upcoming PPI and retail sales data for further monetary policy cues.

Macro Update:  U.S. producer prices are expected to rise 0.2% in April, rebounding from a 0.4% decline in March, with investors monitoring for early signs of tariff-driven inflation. Core PPI is projected to increase 0.3% after a 0.1% dip previously. Annually, headline PPI is forecast to ease to 2.5%, a seven-month low, while core PPI is seen slowing to 3.1%, the lowest since August 2024.

Futures Update:  U.S. stock index futures declined, pulling back some of the week's earlier gains as investors awaited new economic data and the tail end of corporate earnings season. The Dow, S&P 500, and Nasdaq futures all traded lower, with tech stocks leading the retreat. Despite the dip, major Wall Street indices remain on track for strong weekly gains, driven largely by optimism surrounding a potential U.S.-China trade agreement.

Following an upward move at the start of trading on Wednesday, stocks exhibited a lack of clear direction throughout the session, fluctuating back and forth across the unchanged line before ending mixed. The S&P 500 gained 6.03 points, or 0.10%, closing at 5,892.57. Technical analysis indicates that yesterday’s lower trading activity near a key resistance level on the daily chart suggests there may be profit-taking at higher levels in the near term, potentially leading to a pullback in the index. However, key moving averages are approaching a golden cross in the near future, signaling an overall positive trend. Support levels are marked around 5,766, while resistance is anticipated near 5,977.