S&P500

The US stock market is still in the correctional phase. Over the week, the main US indexes gained around 2%. The market almost recovered from the previous strong fall.

The Fed meeting was held last week. It was expected the Federal Reserve to announce a reduction in its $120 billion in monthly asset purchases. The Fed was projected to cut purchases each month by $15 billion till the middle of 2022. However, in their statement, the Federal Reserve System did not mention tapering. In a speech, the Fed chair confirmed that the plan remains valid and the issue of tapering the economic support will be raised in November. Following this news, the market decline has stopped.

Weekly indexes:

The Dow Jones ranged from 34,120 to 34,870 and added 750 points or 2.2%.

The S&P 500 was trading in the range of 4,354–4,443. The index rose 89 points or 2%.

The Nasdaq Composite index ranged from 14,740 to 14,970. It gained 250 points or 1.7%.

Outlook:

The Dow Jones is likely to stay in the range of 34,500–35,200.

The S&P 500 is likely to remain in the range of 4,400–4,500.

The Nasdaq Composite index is expected to be in the 14,800 –15,100 range.

Conclusion: the US market is in a range. Senate Republicans on Monday blocked a bill that would fund the government and suspend the US debt ceiling, leaving Democrats scrambling to avoid a possible economic calamity. If the law is not passed by October 1, there could be a drop in the US market.