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13.05.202111:02 Forex Analysis & Reviews: Morning review of US stock market for May 13, 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 13.05.2021 analysis

S&P 500, the 50 MA is clearly seen

The US stock market has been bearish for the third day in a row. Meanwhile, the US dollar strengthened.

Yesterday, the Dow lost 2%, the NASDAQ tumbled by 2.7%, and the S&P 500 fell by 2.15%.

US stocks plunged amid a sharp rise in inflation. The reading soared by 4.2% in April, higher than the Fed's target of 2-2.5%. The Fed's representatives are now trying to calm the market down by saying that a spike in inflation has been caused by a surge in demand and a 25% rise in commodity prices.

Air strikes in Gaza continued through the night on Wednesday. Up to 100 rockets were fired at cities in Israel. The Iron Dome missile defense system proved successful against Gaza rockets. At least 1 person died due to strikes. There were also direct hits on residential buildings. In retaliation, Israel carried out strikes against armed groups.

US oil production increased by 100K to 11 million barrels per day last week. In 2020, it averaged 11.3 million barrels per day.

US oil inventories dropped by 0.4 million to 484.7 million barrels.

Bitcoin plunged by 12% after Musk's announcement that Tesla stops accepting BTC as a form of payment.

BRENT went down by 1.2% to 68.50 as the US stock market fell on a surge in inflation. The price is expected to be in the $67.50 – $70.00 range.

WTI lost 1.2% to 65.20. The price is expected to be in the $64 – $67 range. An oil pipeline in the US is still closed after a hacker attack. In the southeastern part of the US, gasoline prices rose by $0.30 per gallon. The Biden administration is working to get the pipeline restored.

Conclusion: The bear trend in the market may reverse after 3 consecutive days.

Jozef Kovach
Analytical expert of InstaForex
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