FX.co ★ Overview of the US market (06/22/2021)

The US market experienced one of its strongest declines last week, after the Federal Reserve slightly changed their position on monetary policy. But on Monday, there was a very powerful rebound, which surprised investors.

Last week:

Dow Jones dropped 1.2% (400 points) and valued 34.280 - 33.880 points.

Meanwhile, S&P 500 slipped 0.5% (21 points) and traded at 4.245 - 4.224 points.

As for Nasdaq, it climbed 0.4% (60 points) and ranged 14.080 - 14.140 points.

Obviously, tech stocks were the leaders of growth, dominating other stocks that were falling. The main reason, as mentioned above, was the change of Fed's stance from dovish to hawkish. According to their latest statements, rates may hike twice in 2022, more specifically from the current 0.125% to 0.6%. Monthly bond purchases may also be reduced.

Accordingly, demand for dollar soared, so the USD index is now at 2.5%. Meanwhile, stock indices in US and Japan fell, but the strong growth in US economy suggests that the market will rise again, especially since the COVID-19 pandemic has retreated, thanks to mass vaccinations.

Forecast:

Dow Jones is currently 33.880 points, but is projected to range around 33.500 - 34.300 points this week.

Meanwhile, S&P 500, which currently values 4.224 points, is expected to hit 4.180 - 4.280 points.

As for Nasdaq, it is trading at 14.140 points, but is forecast to reach 14.000 - 14.500 points.