FX.co ★ Overview of the US market (05/11/2021)

The US stock market has been bullish for quite a long time already. Then, yesterday and this morning, a decline was observed, which could mean that the market is now under a correction.

The main reason is the contradicting reports on US employment. On the one hand, the weekly report said jobless claims fell by 700,000, while on the other hand, employment in April was up by only 260,000. The unemployment rate also increased to 6.1%.

Last week:

Dow Jones rose 2% (710 points) and hit 34.030 - 34.740;

S&P 500 4164 gained 0.5% (24 points) and reached 4.188;

Nasdaq fell by as much as 2.7% (370 points) and valued 13.770 - 13.400.

Tech stocks dipped most probably because of the overall market growth. Usually, the leaders of the market pull back first to signal an upcoming correction.

But even though US stocks slipped yesterday, further observation is needed to confirm whether the market is really under a correction. This is because growth may still continue, as the US economy is in good condition.

Forecasts:

Dow Jones will reach 34.400 - 34.900 points;

S&P 500 will hit 4.140 - 4.200 points;

Nasdaq will value 13.200 - 13.600 points.

The US market is waiting for the inflation report on Wednesday, May 12.