ICM: Wall Street Surged on Strong Earnings, Dollar Supported

ICM, the leading London-based FX and CFDs provider, reported that the U.S. stocks finished higher on Tuesday, supported by strong corporate earnings. The dollar bounced-off the lows buoyed by solid economic data and rising risks from Italy and Brexit.

Major U.S. indices settled higher with Dow Jones rising more than 500 points to log its best day since March. The stock market got a boost from strong earnings of Goldman Sachs, United Health Group, and Morgan Stanley. As per ICM trading platform, the Dow Jones Industrial Average gained 2.2% to 25798, and the S&P500 jumped 2.2% to 2809. The Tech sector which dragged down stocks on Monday reversed losses. The tech-heavy Nasdaq Composite rose 2.9% to a one-week high of 7645.

ICM highlighted that the dollar index which measures the greenback against a basket of major currencies bounced-off a twenty-day low of 94.79 to trade at 95.25 during the Asian session. The dollar rallied on upbeat economic data from the United States. The U.S. Bureau of Labor Statistics reported that the number of job openings in the United States reached a new all-time high of 7.136 million in August. Moreover, the Industrial production rose 0.3% in September versus an expectation of 0.1%. Market participants will be waiting for the release of the FOMC meeting minutes later today to grasp clues on the pace of interest rate hikes.

The British pound traded at a high of $1.3236, supported by stronger than expected labor data. The Average earnings index rose to 2.7% from 2.6%, and the unemployment rate held steady at 4.0%. However, the cable erased gains as market participants shift their focus to today's European Union summit.

Gold prices faltered near a ten-week high, weighed down by the rise in U.S. equities and the dollar. The improved risk appetite drove gold prices lower towards $1220. Also, the silver ounce retreated from a two-week high of $14.85 to close lower at $14.65.

Oil prices finished higher, lifted by the drop in U.S. crude inventories. The American Petroleum Institute reported that the weekly U.S. oil stock fell by 2.1 million barrels last week. Moreover, oil prices are finding support from the tension between the West and Saudi Arabia following the disappearance of the Saudi Journalist Jamal Khashoggi. As per ICM trading platform, the West Texas Intermediate crude futures settled higher at $72.15 per barrel, and the Brent futures closed at $81.55 per barrel. The Energy Information Administration will report the official inventory data later today.

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