S&P 500

The US market went into a correction as soon as 2022 began. It remained in this state despite strong gains in the US economy, in part because GDP growth slowed in recent months. And even though the labor market is recovering, employment is dropping, while wages are rising. Demand in the real estate market grew as well, indicating that the market is overheated and is at very high price levels. Additional risk is high inflation, which hit 7% y/y. Most likely, the Fed will have to raise dollar rates, which will lead to an increase in credit and downturn in the economy.

US Indices from January 11 to January 18:

Dow - 36.080 to 35.900 points (down 180 pips or 0.5%)

NASDAQ - 14.910 to 14.890 points (down 20 pips or 0.1%)

S&P 500 - 4.660 to 4.660 (no change)

Forecasts:

Dow - 35.500 to 36.500 points

NASDAQ - 14.500 to 15.250 points

S&P 500 - 4.600 to 4.750 points

Conclusion: A new wave of sell-offs may begin at any moment. But the main driver of movement is the upcoming Fed meeting next week.