Daily Market Report - Thursday, Feb 23, 2023


Shares of the leading semiconductor company NVIDIA (NASDAQ: NVDA) gained more than 8% in after-hours trading on Wednesday after the company reported earnings and revenue for the last quarter that easily topped analysts' forecasts. The chipmaker also revealed plans of launching new cloud-services that would increase the availability of artificial intelligence (AI) tools, including chatbots, to a wide range of businesses.

Earnings per share: $0.88 vs. $0.81 expected

Revenue: $6.05 billion vs. $6.01 billion expected

“AI is at an inflection point, gearing up for broad adoption across industries,” Nvidia CEO Jensen Huang said. “We are ready to help customers take advantage of breakthroughs in generative AI and large language models. Our new AI supercomputer, with H100 and its Transformer Engine and Quantum-2 network structure, is in full production” – he added.


US stock futures and global stocks remain under pressure and continue its downward rally Thursday morning session amid lingering concerns over the aggressive central bank tightening to bring inflation back under control.

On the earnings front, Moderna and Domino’s are amongst those reporting the last quarter's financial results today.


Crude oil futures extend the decline in the Asian session after the latest API data showed the US crude inventories grew substantially more than expected last week. The API data showed the US crude inventories increased by 9.9 million barrels last week, far exceeding expectations for a 1.2 barrel increase. While the last few weeks the oil prices were hemmed into a tight range as investors were caught between pressure from prospects of higher interest rates.


In the currency market, The US dollar remains in favour as a haven currency among traders around the world supported by expectations for faster Federal Reserve interest rate hikes boosted demand for the greenback. The markets predict at least two more rate hikes by the Fed in the near term after the release of hawkish FED minutes, which could keep the dollar relatively strong.


The rise in the dollar has been a setback for gold, which trades near its lowest in more than six weeks. The Federal Reserve's hawkish remarks contributed to negative sentiment in the commodities market. Moving ahead to the North American session, the gold traders will now be focused on the latest US GDP data which is set to be released at 13.30 GMT.

Economic Outlook

On the data front, The FED released minutes from the Fed's February meeting on Wednesday. The minutes revealed that Federal Reserve members almost unanimously anticipate that it is appropriate to raise its Fed funds rate by 25 basis points at the next FOMC meeting. "All the participants agreed that it was appropriate to raise the target range of the federal funds rate by 25 basis points which will let the Fed better determine the extent of future increases" – the minutes said.

Moving ahead today, the important events to watch:

US – GDP: GMT – 13:30

US – Jobless claims: GMT – 13:30

Coronavirus update:

Worldwide, more than 675 million people have been confirmed infected and more than 6.8 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

The currency pair remains under pressure a clear breakdown of the support at 1.0600 could open space for further declines while only a recovery to 1.0700 would reverse the short-term negative trend.

The important levels to watch for today: Support- 1.0580 and 1.0560 Resistance- 1.0640 and 1.0670.

GOLD: For gold today, the first nearest support level is located at $1820/18. In case it breaks below this level, it will head towards the next support level which is located near $1814/10. On the flip side, the resistance for the metal remains above $1848, any break over targets $1855/60.

The important levels to watch for today: Support- 1820 and 1814 Resistance- 1840 and 1848.

Quote of the day - Think for yourself and don’t let the market direct you. Security prices sometimes fluctuate, not based on any apparent change in reality, but on changes in investor perception- Seth Klarman.
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