S&P500
The US stock market fell sharply on Monday.
Main US indexes closed with minor losses, with the exception of tech companies. The Dow Jones Industrial Average matched the opening price, while the S&P 500 dipped by 0.3%. The NASDAQ slumped by 1.3%.
The S&P 500 rose by 1% earlier in the day, but retreated by 1.5% from the daily high afterwards.
The price of Brent crude oil has found support at the 77.50 level. Oil prices are consolidating in the 77.50 - 80.00 range.
Nikkei 225 and the Shanghai Composite changed negligibly on Tuesday morning, edging by 0-0.1% at the end of the trading session.
465,000 new COVID-19 infections were reported worldwide yesterday. 74,000 new cases were registered in the US, 45,000 cases were reported in the UK and 40,000 cases were reported in Germany. The ongoing 4th wave of the pandemic is expected to peak in late December-mid January.
The S&P 500 is trading at 4,683 and is expected to be in the 4,640 - 4,700 range.
Today, US President Biden is set to announce the release of oil from the Strategic Petroleum Reserve to combat rising fuel prices in the internal market. India, Japan and South Korea are also preparing to release oil from their strategic stockpiles.
The sharp decline of the US stock market had no clear reasons. The corrective move to the 50-day MA has long been overdue. An ideal period for such a correction would be the upcoming Thanksgiving Day holidays beginning on Thursday. The main index would have to fall by about 4% on Wednesday to reach the main MA line.
The market is likely to be influenced by tomorrow's data on US GDP growth, unemployment claims and inflation in October.
Biden has reappointed Jerome Powell as chairman of the Federal Reserve. Powell's current term is set to expire in February. The US president also announced he would run for office again in 2024.
USDX is trading at 96.50 and is expected to be in the 96.20 - 96.80 range. The dollar index pushed new yearly highs yesterday, reaching the highest point since July 2020. High inflation and expectations of growing bond yields continue to push the dollar higher.
USDCAD is trading at 1.2710 and is expected to be in the 1.2650 - 1.2760 range. The Canadian dollar continues to rise alongside the US dollar amid lack of strong growth of oil prices.
The US stock market decline is likely to continue until the weekend.
