INDICES - Today's Market Overview

The ongoing earnings season lifted the SPX500 to its new record high of 4,559.65. Although the index couldn't defend the new level, it closed its third straight week of gains.


The DXY (the U.S. dollar index) reached its weekly high of 94.1488 on Monday. The U.S. 10-year Treasury yield climbed to the level of 1.705%, last seen in mid-May. Fed Chairman Powell prioritized tapering to raising rates, the index started its direction downwards, ending Friday at 93.61.

BULLISH TRIGGERS

Healthcare companies and the financial sector reported a higher profit in the SPX500 earnings season. The quarterly results are in full swing, and economists expect a total earnings growth of 34%.

The U.S. dollar remained firm after the country's jobless claims had hit the 19-month low. The upbeat home sales statistics added strength to the greenback, showing the confident steps towards the economic recovery.

BEARISH TRIGGERS

The SPX500 declined upon the Fed Chairman's comment that inflation might last longer than predicted. Also, the disappointing quarterly results from Intel Corp pushed the communication and technology sectors down.

The Fed's rhetoric about the start of the tapering, not yet raising rates, means that the Fed would not be the first major central bank to hike rates. As a result, the U.S. dollar weakened because other central banks would outrun the Fed in the timing of the rates race.

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