S&P500
Weekly US stock market review for February 9-15
Last week, the US stock market went into a downtrend, pushed down by a combination of factors.
According to the latest CPI data, inflation in the US reached 7.5% YoY In January - the highest level in 40 years. Economists expected inflation to slow down. Due to soaring inflation, investors are now pricing in an interest rate increase of 0.5% in March.
Tensions between Russia and Ukraine escalated last week, when the Biden administration announced that it expected the Russian invasion of Ukraine to begin on February 16. Due to the threat of Russian military action, the US State Department urged American citizens to leave Ukraine, Belarus, and the breakaway region of Transnistria in Moldova. War worries led investors to shift away from risks assets such as stocks and bonds, sending the stock market into a slump and pushing the US dollar up.
Over the week:
The Dow Jones Industrial Average lost 1,100 points or 3%. Trading range: 35,700 - 34,600
The NASDAQ decreased by 600 points or 4%. Trading range: 14,400 - 13,800
The S&P 500 fell by 160 points or 3.5%. Trading range: 4,560 - 4,400
Forecast:
Dow Jones trading range: 34,200 - 35,000
NASDAQ trading range: 13,500 - 14,200
S&P 500 trading range: 4,360 - 4,500
The war is unlikely to begin in the upcoming weeks. The US stock market could rally after the closing of the 2022 Winter Olympics in Beijing and the end of Russian military exercises in Belarus.
