The US stock market is closed on the occasion of Thanksgiving Day. Let's look at the weekly results.
On Friday, Asian stock markets closed the week with a decline. Japan's stock indices dropped by 2.5%, while China's stock indices decreased by 0.7%.
As for the commodity market, oil prices fell sharply by 2.8% on Friday as US trading floors remained closed. Brent crude tumbled to $80. Perhaps, traders are nervous ahead of the OPEC meeting as there is a possibility of oil output increase.
The fourth wave of the coronavirus is raging across the world. In the US, there was a sharp decline in new cases on the weekend. However, Germany recorded a drastic increase of 76,000 new cases. Nevertheless, the death toll in Germany is 4 times less than in Russia. More than 315 people died a day in Russia. Notably, in Germany, there are far more new coronavirus cases than in Russia. Experts say that the main reason is the high rate of vaccination in Germany.
Weekly results of the US stock indices:
The Dow is trading at 35,880 - 35,800. It lost 80 points or 0.2% over the week.
The NASDAQ Composite is trading at 16,040 - 15,840. It dropped by 200 points or 1.2% over the week.
The S&P 500 is trading at 4,707 - 4,701. It tumbled by 6 points or 0.1% over the week.
Outlook:
The Dow is likely to trade in the range of 35,600 - 36,000
The NASDAQ Composite is expected to remain in the range of 15,600 - 16,000
The S&P 500 is projected to say in the range of 4,650 - 4,750
The US market performed an upward reversal at the close of the week. During the week, the stock market was affected by inflation data. Consumer prices in the United States remain at a high level of about 5.6% per annum. However, the Fed is in no hurry to take tough measures to curb rising inflation. Therefore, investors believe that the equity market is likely to retain growth until Christmas.
Next week, December will come. As a result, market, participants will be expecting the first economic reports for November. Manufacturing and Services ISM indices will be released as well as jobs reports for November. In addition, investors will pay attention to retailers' Black Friday statistics.
The US dollar index is trading at 96.60. It is likely to remain in the range of 96.30 - 96.90. It is hovering at its annual highs. However, to maintain its rally, it needs to slightly retreat so that more traders have an opportunity to open long positions. The US dollar is already noticeably falling today against the yen and the Swiss franc.
The USD/CAD pair is trading at 1.2720. It is likely to stay in the range of 1.2680 - 1.2760. The pair is likely to lose ground due to the sharp decline in oil prices.
Conclusion. The US stock market still needs a deep correction, which could start any day. Therefore, investors should be cautious.