S&P 500
The US stock market rallied strongly during the final two trading days of January. Last month was the worst month for equities since March 2020.
Market players found support in the Fed's announcement signalling an interest rate hike in March, as well as strong US GDP data. The American economy expanded by 6.9% in Q4 2021. Core inflation rose to a yearly high of 4.9% in December.
Investors have opened new long positions, seeing upside potential in the market. Over the past two days, the S&P 500 has gained 4%, and the NASDAQ has increased by 7%.
This week, the ISM manufacturing PSI report will be released, followed by US employment data. The White House expects the labor market data to be very weak due to January's outbreak of Omicron. However, falling infection rates suggest the situation could improve in late February.
Over the week:
The Dow Jones Industrial Average gained 550 points or 1.7%. Trading range: 34,580 - 35,130
The NASDAQ advanced by 600 points or 4.5%. Trading range: 13,600 - 14,200
The S&P 500 increased by 95 points or 2.2%. Trading range: 4,420 - 4,515
Forecast:
Dow Jones trading range: 34,700 - 35,500
NASDAQ trading range: 14,000 - 14,500
S&P 500 trading range: 4,470 - 4,600
The US stock market is on the uptrend and is likely to continue its advance in the upcoming weeks. The next few days could see a downward correction following the 2-day rally.
