05.10.202108:56 Forex Analysis & Reviews: Review of US stock market, September 5; stocks nosedive due to total blackout of largest social networks

The US stock market incurred losses following the total blackout of the largest social networks.

On Monday, there was the biggest failure of social networks around the world, namely Facebook, Instagram, and WhatsApp. Google Services also stopped their work. Later, social networks resumed operation but the outage lasted at least 6 hours. On Tuesday morning, it was reported that a large-scale hacker attack caused a failure. Reportedly, the personal data of more than 1 billion of Facebook users were stolen.

The main stock indices dropped due to Facebook technical failures. The Dow Jones shed 0.9%, the NASDAQ Composite declined by 2.1%, and the S&P500 decreased by 1.3%.

Japan's stock indices also fell sharply by 2.5% in the morning following the US stock market.

Oil prices went up after the OPEC meeting. Brent crude is trading above $81 on Tuesday. Yesterday, contrary to expectations, OPEC did not increase output by 400,000 barrels a day. Oil producers of developed countries were disappointed by this decision. Yet, the oil price rose. Gas prices in Europe are holding near record levels. On Monday, the price amounted to $1,163. Coal prices in Europe are also at record highs, reaching $232 per ton. It is a 20-year high.

The S&P 500 is trading at 4300. It stays in the range of 4,270 – 4,350. Facebook shares fell by 4.8% yesterday after a big social network failure. The capitalization of Facebook incurred hefty losses in a few hours. The outage cost Mark Zuckerberg roughly $6 billion personally. Probably today, traders will learn more details of the biggest failure of the largest social networks. Google services also experienced an outage yesterday. Despite the fact that the US market declined noticeably yesterday, the S&P500 index did not go below the minimum of the first wave of the fall that occurred on September 20. It was a signal that stocks could recover after the fall yesterday. However, unexpectedly negative news from Facebook halted the growth. For this reason, stocks may rise today.

Yesterday, the US revealed a report that showed an increase in the Manufacturing PMI for August. The reading exceeded the forecast, totaling 1.2%. Data on the ISM Services Sector index for September will be released today. The indicator is projected to amount to 59.7. If so, this will be a positive result but slightly lower than last month's reading.

The US dollar index is trading at 94.00. It is likely to remain in the range of 93.70-94.30 The US dollar index declined yesterday after the fall of the US market. On Tuesday morning, it regained ground. Many analysts are betting on a bullish momentum for the US dollar.

The USD/CAD pair is trading at 1.2620. It is likely to stay in the range of 1.2500 - 1.2750. The pair is facing bearish pressure due to rising oil prices. So, it may fall to 1.2500

To sum up, the US market has started correction after a fall. The US economy is recovering steadily. However, the rally in the stock market is limited by extremely high stock prices. Besides, the Fed is widely expected to tighten its momentary policy.