Technological reaction to the Wall – Nasdaq 3% jump

LAST UPDATE 17:10

The US market is trying to make up for some of the big losses of another week, with investors showing that they want to put a brake on the entry of S&P in a bear market.

In particular, the industrial index Dow Jones moves on 32,102 units on the rise 1.17% or 372 units.

THE S&P 500 is rising 1.94% and is located at 4,006 unitswhile the technologically weighted Nasdaq which is the recipient of the biggest pressures at the moment, is currently strengthening by 3.05% at 11,718 units.

It is worth noting that the rise of the Nasdaq comes despite the fact that the Twitter title sinks by -10%, in the wake of Elon Musk’s statement that he temporarily suspends the acquisition of the popular social networking site, citing pending details about unwanted and fake accounts.

On the contrary, the index is still supported by the titles of the heavily sorted GameStop and AMC Entertainment, which were in the forefront last year after the massive purchases by small investors and strengthened by 15% and 9%, after yesterday they had reached the beastly + 30% and + 20% respectively.

Overall, despite the small losses yesterday, with the closing of the session, the Dow (-0.3%) completed six consecutive bearish sessions, while the closing bell found the big S&P index (-0.1%) at a distance of over 18 % from its historical high and will officially pass bear market if the losses expand to 20%.

Where the Nasdaq has been for a long time, which despite the marginal rise yesterday (+ 0.06%) is more than 29% away from its historical high.

At the level of the current week, the Dow started today’s session at -3.55%, the S&P 500 at -4.7% and the Nasdaq at -6.4%.

Overall, the US market has been plummeting for months, with the liquidation barrage that began late last year from high-tech stocks unprofitable and spreading in recent weeks even to those with extremely strong cash flows.

It is characteristic, after all, that the giant Apple also entered the bear market yesterday, in another of the Big Tech names that succumbed to the expanded sell-off.

Thus, the prolonged losses have now eliminated much of the leaping stock experienced by the stock from the bottom of the pandemic in March 2020.

As Citi strategic analyst Dirk Wheeler points out, “large deviations from long-term price trends have been exploited to determine a potential bubble.”

“Based on such a measurement, we would find that US stocks were in a bubble state and are now coming out of it,” he added.

The prolonged decline in the market in recent months is mainly attributed to persistently high inflation and the Fed’s attempt to curb it by raising interest rates.

For his part, Federal Reserve Chairman Jerome Powell told US national radio yesterday that things would have been better if interest rates had started a little earlier and that he could no longer guarantee a so-called “soft landing”. “.

In terms of individual shares, Boeing is at the top of the Dow Jones with a rally of 4.5%, Salesforce is closely followed by + 4% and American Express and Walt Disney are strengthening more than 3%.

Apple and Microsoft move to + 2%, Amazon to + 3.5%, Alphabet to + 2.5% and Facebook parent Meta to + 2.8%.

By contrast, IBM fell 0.8% and Merck fell 1.15%.

Finally, in the macroeconomic news of the day, US import prices remained unchanged in April, as the decline in oil costs offset the rise in food and other products,