SPX500 managed to rebound from the low of 4,313. The index reached that point at the start of the week, affected by concerns over the Chinese Evergrande possible default. Then it managed to recover and closed the week at 4,455.48.
The U.S. dollar ended Friday at 93.28. As the Fed announced this year's upcoming tapering, it reached a monthly high of 93.51 during the week.
BULLISH TRIGGERS
Tesla and Facebook gained 2.7% and 2%, respectively, making SPX500 advance slightly. The current week will be as volatile as the previous one due to the end of quarter and the end of the current fiscal year in the USA.
Midweek, the Fed declared the forthcoming start of the tapering. The market anticipated this November to be the start of the cycle. The greenback hit the monthly high level of 93.51. Thus, the U.S. dollar finished its third consecutive week positive against the major currencies basket.
BEARISH TRIGGERS
SPX500 started the week with a sell-off due to the Chinese Evergrande possible default. Later on, the stocks of the sportswear company Nike faced the most significant weekly decline of 6.3%. The company is having troubles within its supply chain, so it warned customers of production delays. As a result, investors forecasted negative sales results towards the end of the fiscal year, which led to equity sell-offs.
The U.S. dollar had its most significant one-day drop of 1% in a month after the Chinese Evergrande declared its local payment on its debt. The decline happened last Thursday, but the dollar regained its strength on Friday, as the concerns over the Chinese developer clouded again.
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