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S&P500
The growth of the US market has exhausted.
The major US indices little changed at the beginning of the week: Dow Jones declined by 0.1%, NASDAQ dropped by 0.1%, S&P500 is steadily at 0%.
Asian markets also took a waiting position on Tuesday morning: Chinese Indexes gained 0.2%, Japan Indexes declined by 0.1%.
The energy market. Brent tested support and is trading below $82 per barrel. On Tuesday, it increased by 1% to $82.20.
COVID-19 in the world. There were 426,000 cases yesterday. The figure does not decline. Cases in the US increased by 70,000 at the beginning of the week. The country takes first place in the rank by a number of cases. The UK and Russia have 38,000 cases a day each. Germany and Turkey showed 30,000 and 25,000 yesterday, respectively. There are no declines.
S&P500 is trading at 4682 within the trading range of 4640 - 4700.
Biden signed the $1.2 trillion state infrastructure bill into law yesterday. Biden is confident that this massive spending will help the US to win the economic competition for the 21st century. Biden said at the signing of the piece of legislation that the spending package would help create millions of new jobs, build new roads and bridges, and promote clean energy. At the same time, Democrats in Congress continue to promote the next $1.7 trillion government spending package. However, so far the new package is encountering great difficulties from disagreements within the Democrats themselves to resistance from Republicans because the new spending will inevitably require tax increases. Moreover, the growth of inflation in the US this year to a 30-year high of 6% per year suggests that the ability of the US economy to digest the additional infusion of money is close to, if not completely exhausted. In December, the battle in Congress for a new increase in the US national debt limit may begin. The two issues of the new spending package and the national debt limit are likely to clash.
The online meeting between US President Joe Biden and Chinese leader Xi Jinping yesterday was positive for the US market. The leaders of the two major world powers and major rivals discussed the most important questions. In an effort to reduce the severity of their controversy, relations between the US and China have been strained under Trump's presidency, but tensions remain high to this day under the Biden administration.
Tyson Foods, the largest producer of meat products, said it will have to raise prices. Its purchase prices for beef rose by 30% in the previous quarter.
What is Elon Musk doing at the highs of the US market and Tesla's stock price? He is selling shares in large volumes for the second week. On Monday, Musk sold 934,000 shares for about $930 million. Obviously, the head of the most expensive US carmaker today believes that the Tesla stock is more likely to decline from current levels than to rise again.
The USD index is trading at 94.45 within the range of 94.10 - 94.70. The dollar showed another robust rally at the beginning of the week. This time the euro did not withstand its main counterpart. The euro-dollar fell sharply to 1.1375. The reason for the growth of the dollar is obvious - the high inflation in the US may force the Fed to tighten its policy and make big investors buy USD as insurance against further growth of the dollar.
The USD/CAD pair is trading at 1.2520 within the range of 1.2480 - 1.2560. The dollar declined yesterday against the Canadian dollar despite the dollar's rally against its counterparts. Perhaps, investors remembered the support for the Canadian dollar in oil prices.
An important US retail sales report will be released today. Strong data is expected. It may cause US indices to rise today.
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