Technology rally lifts US market

Bulls remained in charge of US stock market last week as technology rally led the broad stock market higher. The SP 500 added 1.6% while the ICE dollar index fell 0.7% for the week.

The dollar retreat continued last week as the ICE US dollar index fell every session except Friday. The dollar slid 0.2% Monday as factory orders fell by above expected 0.8% in April due to a decline in commercial aircraft. It fell 0.2% Tuesday. The ICE dollar index slumped 0.3% Wednesday, followed by 0.2% loss Thursday as Treasury yields declined as traders sold off technology shares. The dollar gained 0.1% Friday as wholesale inventories climbed 0.1% in April.

The SP 500 retreated only Thursday last week. The broad market index gained 0.5% Monday, extending gains less than 0.1% Tuesday with Nasdaq booking second record in a row as technology rally continued. Financials took lead Wednesday and SP 500 jumped 0.9% as the US trade deficit shrank 2.1% in April, hitting a seven-month low. The big cap stock market index slid 0.1% Thursday. It gained 0.3% as president Trump met with heads of other members of G7 in Canada.

Policy meetings of three major central banks will be in focus this week. The two-day Federal Reserve meeting concludes Wednesday at 20:00 CET, followed by the European Central Bank statement Thursday and Bank of Japan decision Friday. While only the Federal Reserve is expected to hike rates 25 basis points, traders are anxious to hear what the ECB plans are for ending the monthly 30 billion euros bond purchases.