US Stock Market Recovers

US Stock Market Recovers

2022-05-30 • Updated

What happened?

US stocks ended sharply higher on Thursday, May 27, after a 7-week losing streak. The US500 surged 2%, and the US100 jumped 2.7%.

Retail solid earnings Thursday morning spurred markets early in the session, with such companies as Macy's, Dollar Tree (DLTR), and Dollar General (DG) raising their future forecasts.

Thursday's relief rally signals investors that despite the inflation headwinds that many companies face, consumers still have the money to spend. Moreover, a very strong labor market still underpins the overall economy. Overall, markets were hovering near oversold territory, and the rally resulted from decreasing recession fears.

Earlier, the hawkish Fed monetary policy raised investors' concerns. However, meeting minutes released on Wednesday indicated the majority of officials were strongly committed to rate hikes of 50 basis points at each of the next two meetings in June and July. So far this year, policymakers bumped short-term borrowing costs by 50 basis points earlier this month and 25 basis points in April. This information matched the investors' expectations, as the Fed sent a message they were serious about inflation without sending growth into a tailspin.

What to expect?

After the Federal Reserve increased the key rate by 0.75%, the inflation growth slowed down significantly. It signals the correctness of FOMC monetary policy, and the market feels it. If the economic data continues to please investors with its stability, the US stock market will have all chances for significant recovery, and an upcoming Amazon split only confirms it. 

Technical analysis

US100, monthly chart

US100Daily.png

US100 has been moving inside the descending channel since the beginning of 2022. In May, the price has found the local support of 11 700. Currently, the price is forming a reversal formatting right above this support level, and the FBS analytics team expects to see a significant reversal to the upside. The closest target is 13 500. However, if the price breaks out of this channel, it might reach an all-time high value.

Don't know how to trade indices?

  1. First of all, be sure you’ve downloaded the FBS Trader appor Metatrader 5. FBS allows you to trade stocks only through this software.
  2. Open an account in FBS Traderor the MT5 account in your personal area.
  3. Start trading!

Similar

TESLA Earnings Report Outcome Forecast
TESLA Earnings Report Outcome Forecast

In a call scheduled for January 25, 00:30 am GMT+2, the Tesla Inc. team will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

Will NETFLIX surprise investors?
Will NETFLIX surprise investors?

The Netflix stock (NFLX), with a market cap of $145.17B and a whooping 10 000+% rise since its inception 16 years ago, experienced some turbulence for a short period last year while trading around the $250 share price. However, the NFLX stock quickly recovered and rose to over $300 towards the end of the previous quarter of 2022.

Q4 2022 Earnings Report
Q4 2022 Earnings Report

The Q4 earnings season has been interesting, mainly because of the turbulent global economic outlook. On this premise, analysts forecast a disappointing performance for several stocks ahead of the Q4 earnings report publishing.

Latest news

Will USDJPY slide lower in 2023?
Will USDJPY slide lower in 2023?

Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?

BoC Rates Could Alter The Trend on USDCAD and others
BoC Rates Could Alter The Trend on USDCAD and others

Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.

MSFT faces gloomy forecasts ahead of earnings report
MSFT faces gloomy forecasts ahead of earnings report

In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

Deposit with your local payment systems

Feel the Team Spirit

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!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

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