LAST UPDATE 20:15
Volatility in the Wall with the signs alternating on Friday in a session that concludes a week of strong sell-off. The three main indicators return from the losses they recorded after the first transactions, with the Nasdaq recording the largest gains.
In particular, the industrial index Dow Jones is now moving on 30,050 units with profits 0.4% or 130 points, while it had reached a decline of 0.6%. However, it remains in contact with its entry and technically in a bear market (approximately 29,560 units).
The broader S&P 500 is moving at 3,695 units on the rise 0.75%erasing the -0.5% recorded earlier, while the technologically weighted Nasdaq has comfortably crossed to positive ground, marking a “jump” 2% at 10,860 units.
The indicators come from another strong sell-off yesterday, which erased Wednesday’s gains with the above, in the initially positive reception of the brutal interest rate increase of 0.75% by the Fed, and are heading for the close of a strongly negative week.
Specifically, the S&P has entered today’s session with -6% per week Nasdaq with -6.1% and Dow Jones with -4.7% are heading for the worst 5 days since the start of the pandemic, with the industrial index completing its 11th week of decline in the last 12.
“It’s been a bad week, a really bad week,” said Joe Saluzzi of Themis Trading. The US market should fall further, since the Cboe Volatility Index is at 33 points, below the 40-point mark, which could mean some kind of “capitulation” of investors.
The volatility of the US market today is also due to “quadruple witching”, ie the parallel maturity of derivative indices, stocks and their corresponding options. traders close their positions.
Elsewhere, Federal Reserve Chairman Jerome Powell reiterated today the determination of the bank to face the highest inflation in the last 40 years, which according to him encourages the whole world to trade with the US dollar.
“My colleagues and I are solely focused on getting inflation back to the official 2% target,” he said, adding that the Federal Reserve’s strong commitment to our price stability mission contributes to the broader confidence the dollar enjoys as a medium. value storage “.
In any case, the signs of the course of the American economy continue to send negative messages.
Among other things, the spread of US corporate bonds with a junk rating, a significant risk indicator that indicates an increased risk of bankruptcy, exceeded 500 basis points for the first time since November 2020.
Characteristically, for most of the pandemic era, companies with a junk rating around the world needed to pay slightly more than those with a top rating, averaging just 2.4% more in 2021 (240 basis points).
In the meantime, his performance 10-year government bond The US dollar is down 5 basis points at 3.26%, after the biggest two-day drop in the last three months on Thursday. The 2 years amplified by 2 b.p. at 3.18%. The dollar adds 1.2% approaching its highest level in the last 20 years.
At the same time, after three months of growth, the manufacturing activity in the USA retreated in May by 0.1%, when analysts’ average estimates in a Bloomberg poll spoke of a 0.3% increase in factory output.
It was recalled that yesterday it was announced that new home openings fell by 14% in May, compared to an estimate for a decline of only 2.6%, while the Fed Philadelphia manufacturing index for June was recorded at -3.3 from 2.6, showing the first contraction (each measurement below 0) since May 2020.
On the board
In the movements of individual shares, the technological titles meet after yesterday’s pounding. Apple is up 1.8%, Microsoft up 2.15%, Amazon and Meta are up 2.6% to 2.8% and Alphabet is up 1.5%.
At the same time, Tesla after -8.5% yesterday, strengthens today by 2.4%, while Netflix is ​​at + 2.7%.
Of the 30 Dow stocks, 16 are moving positively and 14 are moving negatively. At the top of the industrial index are American Express at + 4.74%, Salesforce which adds 3.78% and Boeing with an increase of 3.58%. At the bottom, Chevron with losses close to 6% and Dow Inc at -2.29%.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
