S&P500

The US stock market is set to rise.

On Thursday, the main US indices rose. The Dow fell 0.2%, the NASDAQ added 0.5%, and the S&P500 gained 0.3%.

The US market declined during the day, but by the close the situation had changed. The S&P500 index closed close to the highs of the year. This indicates an intention to break through the highs.

Asian markets closed the week higher. Japanese stock indices were up 0.5%, while Chinese stock indices gained 0.2%.

Oil tries to reverse upwards after falling to $80. Brent rose to $81.70 in the morning.

On Thursday, there were 600,000 new coronavirus cases around the world. In the US, there were 100,000 cases. Germany saw an increase of 64,000. In Munich, 90% of ICU patients are unvaccinated.

A rising dollar is always a problem for weak currencies. There is another currency crisis in Turkey. The lira fell sharply after the Central Bank cut its rate by 1% at President Erdogan's demand. The lira has lost 30% of its value against the dollar this year.

The S&P 500 is trading at 4,704. It remains in the range of 4,670-4,720.

Retail stocks continued to rise in the US on the consumer boom. However, shares in major merchant Alibaba fell sharply by 8% after the company's profits unexpectedly slumped by 30% in the quarter. The company's management believes high inflation is the reason for the drop in profits.

The weekly employment report was released yesterday. Initial jobless claims remain stable at 260-270K per week. The number of continued jobless claims fell from 2.20 million to 2.08 million.

Ford and General Motors, the two largest US carmakers, have announced strategic investments in chipmaking after a global chip shortage this year.

The US dollar index is trading at 95.60. It is trading in the range of 95.30-95.90. On Thursday, the dollar continued its corrective pullback. This is a signal that the continuation of the dollar's rise has been postponed. The reason is that the Fed is ignoring high inflation in the US, despite its obviousness. In such a situation, the dollar might not continue to rise in the coming weeks.

The USD/CAD pair is trading at 1.2600. It remains in the range of 1.2550-1.2650. The pair is consolidating amid a US dollar stall. The decline in oil is also is also supporting the pair.

Conclusion. There is no important news today. The US market is likely to hit new highs of the year today.