Summer starts with bullish ride in the US stock market

Summer starts with bullish ride in the US stock market

2021-06-01 • Updated

The first day of summer is here! What was May like for the US stock indices? And, most importantly, what should we expect next?

Waves of cautiousness

Last month, the market was swinging between the risk-on and the risk-off. On the one hand, a concern around surging inflation was the main factor driving the American indices down last month. For example, the US Core PCE Index, one of the Fed’s favorite measures of inflation, increased by 0.7% in April to the highest level since 1992. Investors worry that massive injections of liquidity will keep the inflation pressures high for a prolonged time. Despite this uncertainty, the Fed members still see the rise of this indicator as temporary.  Fed’s opinion seems controversial to some investors. As a result, the indices remained pressed in May.

On the other hand, indices could not avoid a fast vaccination pace in the United States combined with the economic reopening. As the monetary policy in the US remains loose, the massive capital inflows push the American stock gauges to new highs.

If we look at the monthly chart of S&P500, we can see that May’s candlestick is a Doji one. This is a warning sign for traders. However, given to existing fundamentals, the retest of 4240 and the breakout to the next high of 4300 are possible.

Untitled.png

As for NASDAQ, the overall picture on the monthly chart was not so bright, as the index dropped below 13,000. By the end of the month, it has managed to recover and reached the resistance of 13,740. The next obstacle for bulls will lie at 13,900.

nasdaq.png

This month, we need to stay extremely focused on the US inflation and speeches by the Fed members. If nothing changes, we may see new highs of the indices above and the pullback afterwards. 

LOG IN

Similar

China’s rebound and energy prices
China’s rebound and energy prices

China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?

What Can Drive Oil below $90 a Barrel?
What Can Drive Oil below $90 a Barrel?

The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.

Latest news

USD Expected To Recover Some Strength
USD Expected To Recover Some Strength

In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes reports...

CAD: Price Delivery Suggests Strength
CAD: Price Delivery Suggests Strength

In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera