The US market hit historical highs after Jackson Hall Symposium.
US indices closed the week in the black. The Dow Jones added 0.7%, the S&P 500 index grew by 0.9%, and the NASDAQ composite rose by 1.2%.
Shares of tech companies were the biggest gainers. This is hardly surprising as they are the leaders of the current economic cycle.
Asian markets are trading mixed. China's stock market dropped by 0.3%, while Japan's stock market climbed by 0.5%.
As for the commodity market, Brent crude is holding at high levels. Brent crude futures for October are slightly lower at $73-72.80
Yesterday, there was a decrease in new coronavirus cases to 452,000 worldwide. On Sunday, the number continued to decline as, in previous days, new cases were growing rapidly about 700,000 cases per day. The US registered the biggest number of new cases - 100,000 per day. In Russia, there is a seasonal decrease in Moscow and St. Petersburg to 1,400 - 1,600 cases. In Europe, about 60% of people are fully vaccinated.
This week, traders are awaiting Us macroeconomic data for August. On Wednesday and Friday, the US is going to release ISM Manufacturing and Services indices, as well as an employment report for August. The indicators are projected to be very strong. According to forecasts, the US economy created 800,000 new jobs in August and the unemployment rate fell to an acceptable 5.2%
The S&P 500 is trading at 4.509. It is likely to stay in the range of 4.470-4.530. The index managed to break the 4.500 level for the first time in history. At the close of last week, Fed Chairman Jerome Powell confirmed that the regulator may start tapering QE in November-December. The Federal Reserve is "coalescing" around a plan to begin reducing its $120 billion in monthly bond purchases. The final decision will be announced at the Fed meeting in September 20. There are rumors that the Fed may reduce the bond-buying program at a pace of $15 billion. per month with full completion by mid-2022. Traders did not reach negatively to this event. Powell tried to calm market participants as much as possible, repeating once again that he considers the current high level of inflation temporary. He believes that inflation will soon fall to the target level of 2%.
On Monday, the United States reported on the consequences of Hurricane Ida in Louisiana. New Orleans was left without power. This is the strongest hurricane since Katrina that occurred 16 years ago. In Europe, politicians are discussing today strict restrictions on flights to the United States due to the high level of coronavirus cases in the US.
The US dollar index is trading at 92.60. It is likely to remain in the range of 92.30–92.90. The US dollar declined against a basket of six major rivals at the close of the week. The US dollar is likely to trade in the current range until the Fed meeting in September.
The USD/CAD pair is trading at 1.2620. It is likely to stay in the range of 1.2580-1.2680. The pair finally began to react with a decrease to the rise in oil prices. If oil make an attempt to reach $75, the pair is highly likely to edge lower to 1.2400.
So, trading is likely to unfold sluggishly as investors are anticipating the publication of important macroeconomic reports from the US.
