18.05.202112:04 Forex Analysis & Reviews: Overview of the US market (05/18/2021)

US stocks declined by as much as 5% last week, mainly due to the unexpected jump of US inflation to 4.2%. But by the end of the week, the market has calmed down, thanks to the reassurance of the Federal Reserve that they will maintain a super-soft policy, and on the news that retail sales were below forecasts.

All in all, since the beginning of the year, the US market has grown by 13%.

During the week:

Dow Jones - from 34.740 points to 34.330 points (down by 1.2% or 410 points);

S&P 500 - from 4.188 points to 4.163 points (down by 0.6% or 25 pips);

Nasdaq - from 13.720 points to 13.380 points (down by 2.5% or 340 points).

Forecasts:

Dow Jones will range around 33.500 - 35.000 points;

S&P 500 will reach 4.065 - 4.240 points;

Nasdaq will hit 13.000 - 13.750 points.

Conclusion: The bullish trend will continue, even though there is a chance that tech stocks will drop this week. Such will indicate that market growth is ending, and that a new cycle will begin.

And although there are no big news expected next week, investors will look at the weekly US employment report to assess if the market has the ability to rally and hit new yearly highs.