Last week, major US indices lost about 1%. Investors were evaluating the new portion of the quarterly reports of companies, statistics and the speech of the US Federal Reserve Chairman Jerome Powell. The first half of the week was successful. The Nasdaq 100 managed to test a new all-time high at 15,000 points. The S&P 500 came close to the level of 4,400 points. However, on Thursday and Friday, the indicators lost all growth and corrected. June inflation data and the spread of a new strain of coronavirus have put pressure on asset values around the world. In our opinion, it is too early to talk about a global correction. From a technical point of view, American indicators look pretty confident. In addition, a successful 2Q corporate reporting season can bring many surprises to investor sentiment.
In June, the pace of US consumer price increases peaked in nearly 13 years as the economic recovery picks up steam. The CPI jumped 5.4% compared to June last year. Prices excluding food and energy (Core CPI) in June increased 4.5% year-on-year, a record rise since November 1991. Statistics released Thursday showed that US jobless claims fell last week in line with forecast. The volume of industrial production in the United States in June increased by 0.4% from the previous month, according to data from the Federal Reserve System. Analysts polled by Trading Economics predicted an average growth of 0.6%.
