Concerns about being too hasty cancelling the lockdown became the main factor affecting the US stock market at the beginning of last week.

Market participants feared the possibility of a new outbreak of COVID-19. Investors also analyzed the prospects for worsening relations between the US and China. On Monday, Beijing warned that it would take countermeasures in response to Washington’s decision to tighten visa rules for Chinese journalists, and urged US authorities to rectify their mistakes immediately. Against this background, the main indices showed multidirectional dynamics.

On Tuesday, the market declined remarkably, the main factors were the same factors as the day before. Investors also studied the report of the Department of Labor, which showed that consumer prices in the US fell in April in accordance with the forecast. According to the report, the consumer price index in April fell by 0.8% after falling by 0.4% in March.

On Wednesday, the fall continued after the statements by US Federal Reserve Chairman Jerome Powell. In his speech, the Fed chairman commented on the state of the US economy, which, according to him, is experiencing an "unprecedented scale of recession." He also noted that the economic outlook is extremely uncertain and the risks of decline are significant, adding that additional policy measures may be required to avoid long-term damage. Powell promised that the Fed would continue to use its “full” policy instruments until the crisis passed and economic recovery began in full swing. However, when asked about a possible reduction in interest rates to negative values, Powell replied that the Fed’s view of negative rates has not changed.

On Thursday, the market moved to growth due to a rally in the financial sector. Investors actively analyzed internal statistics. A Labor Department report showed that the number of initial applications for unemployment benefits in the US was 2.981 million in the week ending May 9, which was 195,000 less than the previous week's revised level of 3,176 million, but exceeded the estimate of economists who expected that the number of applications for unemployment benefits will fall to 2.5 million. The number of applications for unemployment benefits has been steadily declining since reaching a record level of 6.867 million at the end of March, but the number of new applications has reached almost 36.5 million after the coronavirus economical recession. Market participants also continued to monitor the quarterly reports of US companies.

The week ended with slight growth, as market participants tried to overcome oppressive macroeconomic data and increased tensions between the US and China. A report by the U.S. Department of Commerce showed retail sales fell 16.4% last month, the biggest drop since the government began tracking the series in 1992. March data was revised to show that sales fell 8.3% instead of 8.7%, as previously reported. Economists predicted a 12.0% drop in sales. In turn, the Fed said that industrial production in April fell by 11.2%, which was the largest drop in the 101-year history of the index. Economists had predicted that the figure would show a decline of 11.5% after falling in March by 4.5%. Concerns added Reuters reports that the administration of US President Donald trump plans to cut off the Chinese telecommunications giant Huawei Technologies from global chip suppliers.

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