Strong Walls profits with technology ‘guide’

Wall Street returned to a bullish trajectory on Wednesday, leading the tech industry, pushing back on declining US bond yields amid speculation that inflation may have “seen” its peak, which in turn sparked hopes for a gradual de-escalation of rising prices.

This is despite the fact that the latest economic data from the USA and the developments from abroad insist on showing that the “shadow” of inflation continues to spread more and more over the economies.

Earlier, it was reported that the US producer price index jumped 1.4% in March from the previous month, as the rally in energy continues to push prices, in an additional indication that inflation is not expected to escalate soon from the high 40s he has climbed in recent months.

Since March last year, the index has jumped 11.2%, from 10% last month, climbing to its highest level since the early 1980s.

The official measurements exceeded the estimates of analysts who spoke of an annual increase of the index by 10.6% and a monthly by 1.1% in a Bloomberg poll.

The structural index excluding energy and food increased by 1% from the previous month and by 9.2% from the corresponding period last year, as shown by government data,

The messages from other major economies are similar. The United Kingdom reported the fastest rate of inflation in 30 years and the Reserve Bank of New Zealand raised interest rates by half a percentage point higher than expected.

Nevertheless, the de-escalation of bond yields raises hopes that inflation has reached a peak and is expected to begin to “decline”, which mainly favors the technology sector and growth stocks, which today have taken the lead higher the market.

It is noted that the yield of the US 10-year fell today by four basis points, reaching 2.688%, from 2.724% earlier.

At the same time, investors seeking to divert their attention away from the “ghost” of inflation, today focused on corporate quarterly results, from where the first messages in general show “positive”.

Indicators – Statistics

Thus, the US market, although it started the week declining, today changed course with the indices ending the session with strong gains and close to the highs of the day.

In particular, the Dow Jones industrial average closed 344,223 points or 1.01% higher, reaching 34,564.59 points.

The broader S&P 500 also gained 1.12%, breaking a three-day bearish streak and closing at 4,446.59 points.

The protagonist of the day, of course, was the technological Nasdaq, which finished at 13,643.59 points, or 2.03% or 272 points higher, putting an end to the three-day decline that preceded.

Of the 30 shares of the blue chips index, only two closed with losses: JP Morgan which closed with a fall of 3.22% after the lower-than-expected quarterly results announced and Travelers, which slipped by 0.67%.

All others closed with gains of 0.05% to 3.74% in the Boeing title, with Walmart and American Express completing the top three with a rise of 2.60% and 2.31% respectively.