US stock indexes closed lower on March 5 (S&P500: -0.12%), taking a break from a rally with 16 of the last 18 positive weeks.
The market is cautious ahead of a busy week, due to the knowledge that stocks are trading near all-time highs. Fed Chairman Jerome Powell is expected to testify before Congress, as well as new labor market data. Investors are also hesitant ahead of earnings reports from retailers including Target and Costco, as well as results from Broadcom. Tesla shares fell after Bloomberg reported that shipments from its Chinese plant fell by 19% over the year.
Treasury yields rose, and the US dollar fell slightly against major world currencies. The euro, meanwhile, rose to $1.086 (+0.16%).
This week also sees Super Tuesday, the biggest day on the US presidential primary calendar. The EUR/USD options market has begun positioning for the US election a year in advance. The market is currently expecting EUR/USD volatility to be nearly four times higher than usual the day after the election.
