The US market dipped last Friday even after receiving a strong GDP report. Apparently, the 6.2% increase in the indicator was offset by the news that the Federal Reserve intends to maintain its super-soft monetary policy for a long time, as well as the plans to continue liquidity injections of roughly $ 120 billion per month.

It was also reported that the GDP deflator rose to an uncomfortable 4.1%, while long-term unemployment has stabilized at around 3.5 million

All these led to Dow Jones, S&P 500 and Nasdaq slipping by 0.5%, 0.7% and 0.8%, respectively.

With regards to the world's epidemiological situation, a slight decrease in infections was recorded. Total cases dropped to 680,000, but India's overall incident rate has jumped to 400,000 yesterday. Thankfully, it dipped to 370,000 today, but deaths remain at roughly 3,500.

Meanwhile, other countries are seeing an improvement. For example, both France and Germany listed less than 15,000 new coronavirus cases, while the United States jotted down 30,000, which is two times lower than last week's figures.

Going back to the markets, the oil sector is also looking down this week, as many are beginning to fear an increase in supply, which will inevitably lead to a collapse in prices.

In fact, Brent declined by 0.7% today, trading at only $ 66.20. It is expected to cost around $ 65.00 - $ 67.00 for the rest of the day.

WTI also fell by 0.7%, reaching a price of $ 63.10. It is projected to trade around $ 62.00 - $ 64.00 today.

Although large banks such as UBS predict an increase in oil prices, their forecasts practically coincide with the already reached levels of $ 63-66. This only means that there is not much growth potential, even if demand is expected to jump by 5.5-6.5 million barrels.

As for macro statistics, the US will publish reports on industrial and service PMIs this week, which will undoubtedly affect the markets. Good performance may lead to an increase in investments.

Conclusion: The US market may correct this week, after the US releases reports on industrial and service PMI.