FX.co ★ US stock market on October 6, 2021

S&P500

The US stock market showed stable growth. Has the correction ended? Expecting the employment report for September.

On Tuesday, US stocks scored gains: the Dow added 0.9%, the NASDAQ grew by 1.25%, and the S&P500 increased by 1%.

The market has recovered after a sharp drop at the beginning of the trading week. Global social media platforms have been restored after an hour-long blackout and the issue of the debt limit in the US has taken a back seat.

At the same time, Japan's stock indices plunged by 1% this morning. Meanwhile, S&P500 futures may drop by 0.5% in the US stock market at the opening of the trading session.

Crude oil is extending gains, ignoring a correction in the stock markets. Brent has reached the $83 mark. The benchmark was trading at $82.80 early on Wednesday. US crude oil inventories increased by 0.95 million barrels per week. Growing oil prices, as well as abnormally high gas prices in Europe, are likely to pose a threat to the global economy. Gas was trading at $1,200 in recent days. High energy prices are likely to boost inflation. As a result, the world's major central banks will be forced to raise interest rates, and this will halt global growth.

COVID-19 worldwide: The infection rate is slowly decreasing. More than 411K new global cases were reported yesterday. In the US, the infection rate is usually higher on the weekdays, +95K new cases.

The S&P500 is at 4,345, staying in the 4,320–4,380 range. Support levels were determined on Tuesday amid a bullish US stock market. The lower boundary of the range was established. The S&P500 index is now expected to be trading in the 4,260–4,540 range for a long time. The ADP employment change is estimated to show a 400-450K increase. In the previous month, the reading came well below market expectations. The market is closely watching the results. The ISM Services PMI logged a decrease in employment to 53 and a 77.5 increase in prices. Overall, the index edged up to 61.9 in September.

The $3.5 trillion bill may be cut by Democrats. Otherwise, it is unlikely to be approved by the Senate.

USDX is at 94.10, trading in the 93.80–94.40 range. The US dollar is bullish. Consolidation at higher levels indicates the market is likely to remain bullish.

USDCAD is trading at 1.2590 in the 1.2500–1.2650 range. The pair is facing bearish pressure amid growing oil prices. The pair is expected to plunge to 1.2500.

Market participants await the release of the employment report for September. The market is expected to be bullish.