FX.co ★ Overview of the US market (05/12/2021)

US indices fell sharply on Tuesday, which may be a signal for a strong correction.

Dow sank by as much as 1.4%, while S&P 500 and Nasdaq slipped by 0.9% and 0.1%, respectively.

There was no big news, but many investors decided to sell positions amid growing concern on inflation.

Covid also continues to haunt the global economy, especially since the overall incident rate is still as high as 710,000. India is leading at 350,000 daily cases, followed by France with 20,000, Germany with 9,000 and Russia with 8,000.

Meanwhile, Asian markets moved in different directions this morning. Japan indices dipped by 1.5%, while China indices gained 0.5%, thanks to strong economic recovery.

Forecasts:

S&P 500 currently values 4.150 points. It will close around 4.110 - 4.180 points today;

The USD index currently values 90.25 points. It should close around 89.80-90.60 points today;

USD/CAD currently costs 1.2100. It may fluctuate from 1.2050 to 1.2150 today.

Conclusion: The market is waiting for the US inflation report on Wednesday, May 12. Another decline may occur after a slight increase.