The rally in the market stopped yesterday, after US Treasury Secretary Janet Yellen said interest rates may hike much earlier than scheduled to limit inflation. Nasdaq fell by 1.9%, while S&P 500 dipped by 0.7%.
Seeing this, Yellen tried to take back her words, saying that she does not consider inflation to be a serious problem. But the markets had already fallen and by contrast, oil quotes have risen by as much as 2.5%.
Fortunately, the markets were able to win back numbers by the end of the day, and today they are waiting for the ADP to release the latest employment reports.
The S&P 500, which currently amounts 4.160 points, is projected to range around 4.120-4.200 points. Indeed, the US market is ready for a correction, but a new upward hike in the indices is also possible. And if it did rally to the highs, experienced traders will start selling positions because the upward potential is rather small, while the downward prospects are big.
As for the USD index, which currently values 91.30 points, it is expected to range between 91.00 and 91.60, mainly due to increased demand amid growing bond yields.
The USD/CAD pair, which currently costs 1.2290, is predicted to fluctuate around 1.2240-1.2350 due to the recent rally in oil prices.
Going back to stocks, it was reported that NISSAN sold $ 1.15 billion worth of Daimler shares to finance the development of electric vehicles.
Pfizer, a leading provider of COVID-19 vaccine, saw 1.5% increase in revenue this 1st quarter.
Conclusion: The US market is currently waiting for the ADP employment report, which will be released today at 12:30 GMT. If the figure is much lower than expected, the market will dip very strongly.
