Gold, Oil and major Wall Street stocks

  • Wall Street sees declines on fresh inflation concerns
  • Spot gold gains 0.8% as investors seek safe-haven assets, but upside capped by dollar’s strength
  • Oil prices fall on statements from IEA and OPEC
  • Rivian and Visa among big losers on Wall Street, Tesla gains 3%

The US stock market is seeing major dips across the major indices as investors continue to worry about potential interest rate hikes. This follows mixed sessions for the European market as data released Wednesday showed Eurozone inflation rose 4.1% in October compared to a year ago, more than 50% higher than European Central Bank’s target.

While the pan-European Stoxx 600 is up 0.2%, the FTSE 100 is down 0.5% while across the Atlantic, the Dow Jones Industrial Average has fallen 0.6%, the S&P 500 was at -0.24%, and the Nasdaq Composite was in the red by 0.2%.

Gold firms as oil dips

On Wednesday, gold prices were holding steady as sentiment across the market soured on fears of interest hikes. The dollar index’s strengthening against its peers saw spot gold prices capped around $1,864.79 as of 0900 GMT. Despite this, gold was up 0.8% on the day as investors sought safe-haven assets.

But a strong dollar might curtail gold’s potential to break higher, with the precious metal likely to retest support levels below $1,850.

Elsewhere, oil prices declined on news the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) had said the sector faced potential oversupply headwinds.

Brent crude futures pared recent gains by $2.05 or 2.5% to go for $80.38 per barrel. Meanwhile, the WTI crude futures were down 3% or $2.47 at $78.29 per barrel.

Rivian, Target, and Visa highlight major declines

There were major casualties on Wednesday as stock prices fell across the sectors, with investors seeking to lock in profits ahead of likely slips during the holiday season.

Retail giant Target (TGT) saw its stock price decline by more than 5% as the company released its third-quarter earnings results. The company’s shares were under pressure after the retailer revealed it would be discounting sales to cushion its customers.

Visa (V) shares were down more than 5% as the payments giant was hit by negative news from Amazon. The e-commerce giant said on Wednesday that it would halt payments on UK Visa cards due to high fees.

Rivian (RVN) is one of the biggest losers on the day, with shares of the electric car company dropping by more than 16% as traders likely took their first profits after the stock’s public debut last week. Analysts expect Rivian to rebound as the firm continues to punch above heavyweights in the EV sector. 

Contrary to recent moves, Tesla (TSLA) was up 3% on Wednesday despite another sale from CEO Elon Musk.

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