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FX.co ★ US market. Weekly outlook on 08.03

US market. Weekly outlook on 08.03

US market. Weekly outlook on 08.03

S&P500

Global markets and the US market came under heavy selling pressure after February 24, when Russia launched a so-called military operation in Ukraine. Since then, all the world's media, all the investors have been almost entirely preoccupied with following the Russia-Ukraine conflict situation. Western countries have imposed very tough sanctions against Russia, especially financial ones. Central Bank reserves and operations are frozen. The main Russian banks are disconnected from the SWIFT system. This week, the backlash from Russia's military action in Ukraine and sanctions was compounded by a sharp negative from skyrocketing oil and gas prices. Oil rose to $125, the highest since the summer of 2008. The price of gas in Europe climbed to $3,000 on the ICE exchange. At the moment the conflict in Ukraine is ongoing, although in the last few days there may have been some reduction in the intensity of hostilities and progress in negotiations between the parties involved in the conflict. At least there is hope for a reduction in the intensity of hostilities.

In the coming week, the market will receive the US inflation report for February. Investors are finally expecting a slowdown in inflation. This is an important event ahead of the Fed's rate decision on March 16. The market expects a 0.5% Fed rate hike.

US indices for the week

The Dow is in the 33,800 - 32,800 range. It lost 1,000 points or 3%.

The NASDAQ is in the 13,700 - 12,880 range. It dropped by 800 points or 6%.

The S&P500 is in the 4,360 - 4,200 range. It declined by 160 points or 4%.

Outlook

The Dow is expected to be in the 32,500–33, 500 range.

The NASDAQ is expected to be in the 12,500–13, 200 range.

The S&P500 is expected to be in the 4,100–4, 300 range.

The US market is ready to rise in spite of the fall. The US economy is still strong. Negativity from the Russia-Ukraine conflict, rising oil, high US inflation, and Fed rate expectations are putting pressure, but the market could rally despite all this.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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