empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

05.03.202115:44 Forex Analysis & Reviews: US stock market on March 5, 2021

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Exchange Rates 05.03.2021 analysis

The review of the US stock market for March 5, 2021

Yesterday, the major US stock indices lost approximately 1-2%.

On agenda:

The US stock market is under pressure amid an increase in yields on government bonds. On top of that, Fed's Chair Jerome Powell admitted the fact that the inflation rate in the US has accelerated.

The main US stock indices have dropped for three consecutive sessions. The plunge followed an increase in yields on Treasures. Apart from that, a deeper correction is needed due to an overbought status of the market.

There are two key factors that influence the US stock market. The first one is the large-scale $1.9 trillion rescue plan, which accounts for approximately 10% of the country's GDP. The second one is the overbought status on the US stock market, extremely high prices, and a clear slowdown in the US labor market.

The US Labor Department report is set for release today. Total nonfarm employment is expected to advance by 170K. Meanwhile, the reports of the last couple of weeks reflect a clear slowdown in the US labor market as well as no change in the 6.4% unemployment rate. The number of continuing jobless claims is projected to be 4.3 million, while initial claims are estimated to rise by 730K.

The S&P 500 lost 0.2%.

Oil settles higher (CL futures contract)

Brent set another record high of $89 per barrel, the level unseen for over a year. Oil prices jumped after yesterday's OPEC meeting. The cartel decided to keep production largely steady despite an improvement in the global economy amid a decrease in COVID-19 cases. Only Russia and Kazakhstan will be allowed to rise production by approximately 150,000 barrels per day.

Jozef Kovach
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off