Hi everyone! Yesterday the US stock market took a nosedive. All major stock indices closed with sharp losses. In this video, we would like to tell you about main causes of this slump and share our forecasts with you. Watch it till the end!
The S&P 500 that is seen as the main barometer of the stock market’s health closed in the red on Monday. Initially, the index rose almost 1% and fell abruptly by 1.5% from intraday highs in the late American session. Today futures on the S&P 500 are trading in a narrow corridor between 4,685 and 4,675. The index is expected to win back part of its losses before the long weekend and rebound to 4,700 points.
The US dollar index that measures strength of the US currency against a basket of six major rivals is turning lower, having surged to the highest level in 16 months. The index showed a strong rally yesterday but retreated to 96.35 today. This decline comes as no surprise. The US dollar index is likely to dip to 96.20 and consolidate at this level for a while.
The greenback is holding the upper hand over its Canadian peer. Today the currency pair has climbed to the level of 1.2720. Meanwhile, oil prices are consolidating lower, so the USD/CAD pair is set to grow on the back of the stronger US dollar. Analysts predict that the currency pair could rise to 1.2750 today and tomorrow.
Bitcoin is not able to break loose from support. The price is still hovering at around 56,600 dollars. Yesterday, Bitcoin briefly rose to 59,000 dollars but a retracement followed later on. No market-moving news has been released in a few recent days. Our analysts believe that the digital token will make another attempt to break resistance at near 59-60,000 dollars. Currently, large holders of crypto wallets are buying coins, thus setting the stage for a new bullish wave.
To sum up, the US stock market might extend its decline until the weekend which is beginning on Thursday. Market sentiment might depend on the economic data which is due tomorrow. On Wednesday, investors will get to know the US GDP, a weekly report on unemployment claims, and above all else, inflation data for October. As for inflation and counter-measures against this problem, the situation has cleared up. The US President reappointed Jerome Powell Fed Chairman for a second term. Let me remind you that the incumbent and future Fed’s leader advocates for ultra-loose monetary policy. Do you think that the regulator will fine-tune monetary policy slowly and cautiously when inflation has soared to the highest level in 30 years? Share your viewpoint with us! See you tomorrow!

00:00 Situation on the US market
00:20 S & P500
00:54 DXY
01:24 USD / CAD
01:50 Bitcoin
02:30 Results

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