S & P 500 chart.
Rally in US market stops in anticipation of the Fed policy meeting.
US indices either remained in place or showed a slight decline on Thursday, failing to continue the growth observed in the previous day. Dow fell 0.2%, while NASDAQ and S&P 500 lost 0.1% and 0.16% respectively.
Meanwhile, Asian markets posted growth this morning. Japanese indices rose 0.5%, while China indices gained 0.1%.
But all in all, the S&P 500 valued 4.473 points, ranging from 4.440 to 4.500. Most likely, investors were encouraged by the increase in US retail sales for August, which was up 0.7%. Sales excluding vehicles grew 1.8%, while furniture sales jumped 3.7%. Online sales also soared 5.3%.
In terms of employment, jobless claims rose slightly to 332,000, from 318,000 a week earlier. Fortunately, repeated claims decreased by 120,000 to 2.66 million.
Wall Street Journal comments that the US economy is showing resilience in the face of the Delta strain. Citizens have sharply increased in-store purchases, and employers are not cutting hiring despite high Covid numbers.
Even so, the market is currently not as strong as the economy, as there is weariness from prolonged growth. In short, stock prices are inconveniently high.
On the bright side, oil prices continue to soar above $ 75. It is now at $ 75.60.
With regards to the coronavirus, there was another increase in the amount of new cases to 570,000. The US accounted for approximately 151,000, while the UK accounted for 27,000.
Talking about dollar, it rose slightly to 92.90 points, ranging from 92.60 to 93.20. But even though it showed growth, the rate is still moderate. Clearly, the currency is climbing because of the Fed meeting on September 22.
As for USD/CAD, price increased a bit to 1.2680, ranging from 1.2600 to 1.2750. The pair rose along with the general increase in dollar, but remains inside the range. Also, the rise in oil prices has not yet caused the Canadian dollar to strengthen.
Conclusion: Investors are waiting for the Fed's decisions on Wednesday. The likelihood of a decline in the market is quite high.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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