The US market closed with a solid growth last week on the back of strong economic data and no growth in US COVID-19 infections. The DJIA went up by 0.7%, while the Nasdaq Composite increased by 1.4%. The S&P 500, on the other hand, jumped by 1%.
According to reports, US PMI hit 60.6 points this April, which is apparently the highest level it achieved since 2007.
Following this, Asian markets also climbed up this morning, with Japan gaining 0.5% and China jumping by 0.1%.
Forecasts:
The US will release a report on orders for durable goods today. The data is expected to have grown by 2%, coming out at 1.8 points.
As for Q1 GDP, it is expected to have risen by 6%.
Inflation is also estimated to be 2.8%
With regards to consumer income and expenditures, a 21% jump in income and 5% in expenses is predicted.
Going back to the stock market, the DJIA is currently at 34.050 points, and it is projected to close between 33.700-34.200 points today. Apparently, there is no reason for growth to continue, so the market will fluctuate around current levels until it receives a strong impulse to fall.
As for the USD index, it fell again to 90.70 points on Friday. Analysts believe that the bearish trend has ended, so it should range around 90.20–91.20 points today.
Meanwhile, the Canadian dollar turned up sharply, bringing USD/CAD at 1.2470. But since there is strong support around 1.2360, it may fluctuate around 1.2360-1.2550 today.
Conclusion: The US market is showing signs of fatigue and readiness for a correction. The reason may be Biden's plan to raise taxes in order to finance the new $ 2 trillion spending plan. In any case, the market will wait for the Fed's policy decision on Wednesday. Q1 GDP report may also shake the market, especially in the case of bad data.
