The US stock market hit a new one-year high.
On Thursday, the Dow Jones Industrial Average remained unchanged, the NASDAQ added 0.6%, and S&P 500 advanced by 0.3%.
Asian markets closed the week with gains: Japanese indices increased by 0.2%, Chinese stocks rose by 0.7%.
Energy. Oil prices pulled back significantly from Thursday-Friday highs. Brent crude was down by $2 to $84 from $86.
Gas crisis. US President Joe Biden said he did not anticipate a drop in global gas prices before spring 2022. The European Commission is considering measures to support consumers and businesses in the face of a steep rise in gas prices in Europe. Gas prices on the ICE exchange are trading above $1,000 per thousand cubic meters.
COVID-19 in the world. The fall in infections has stopped, and the world appears to be teetering on the brink of a fourth wave of coronavirus. The number of new cases worldwide increased by 450,000. The US reported more than 80,000 new coronavirus cases. In Britain, confirmed cases increased to more than 52,000. Russia reported its highest daily total of new infections, 36,000.
S&P 500: 4,550. Trading range: 4,510-4,570. Yesterday, the US stock market advanced for the seventh trading day in a row and closed at a new one-year high, and more specifically, a new all-time high. On the one hand, it can be clearly seen that the sentiment of major investors is bullish. On the other hand, the market shows signs of softening upside momentum. US stocks will probably continue rising for some time. However, it is too risky to open long positions at the current levels as a significant pullback is likely to occur in the very near future.
Now let's consider macroeconomic statistics. The boom in the housing market continues. Existing home sales rose to 6.29 million on an annualized basis in September, topping analyst expectations and the August indicator of 5.88 million. Initial weekly claims for state unemployment benefits are 290,000, below 300,000. The number of Americans continuing to receive regular state unemployment benefits decreased by 120,000 to 2.48 million.
The index of leading economic indicators showed a slowdown in growth. It gained 0.2% compared to 0.8% last month. The main business media are writing about the continued discussion on Biden's infrastructure package in Congress. Against this background, Biden is losing support among voters disappointed with a reduction in new social programs, his core campaign promise. In general, market participants expect the trading session to be calm.
USDX: 93.60. Trading range: 93.30–93.90. The US dollar index has stalled in a range and is likely to remain there until the Fed meeting scheduled for November 3.
USD/CAD: 1.2350. Trading range: 1.2300-1.2400. The pair has met buyers below 1.2300 and is currently trading at lows.
Conclusion. The US market is expected to enter a downward correction and then resume its bullish run.