FX.co ★ Review of US stock market for May 28, 2021

S&P 500

The US stock market has been in a narrow range for 4 days. Yesterday, US indices advanced. The Dow added 0.4%, the NASDAQ Composite Index lost 0.1%, and the S&P 500 gained 0.1%.

Biden's infrastructure plan may be cut to $1 trillion. The question is how this plan will be financed. Republicans are against tax hikes on the rich and corporations.

COVID-19 worldwide: The third wave of the pandemic is slowly loosing its grip. India reported 180K new infections and 3.5K deaths yesterday. In Brazil, there were 67K new cases.

In France, the daily infection rate fell to 14K yesterday.

US Treasury Secretary Janet Yellen announced on Thursday that high annual rates of inflation will persist to the end of 2021. In April, inflation in the US accelerated to 4.1%. Yellen suggests that inflation will drop in 2022.

S&P500 is likely to be in the 4160 - 4240 range.

USDX is at 90.10. The US dollar may strengthen after yesterday's record spike to 109.90 against the yen.

USD/CAD is expected to be in the 1.2000 – 1.2150 range.

Conclusion: The US stock market is in the range. The US dollar may strengthen.