Technological reaction to the Wall – Nasdaq jumps 3.5%

LAST UPDATE 18:40

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 32,210 units on the rise 1.55% or 490 units.

THE S&P 500 is rising 2.3% and is located at 4,020 unitswhile the technologically weighted Nasdaq which is the recipient of the biggest pressures at the moment, is currently strengthening by 3.5% at 11,770 units.

It is worth noting that the upward reaction of the Nasdaq comes despite the fact that the Twitter title sinks by -7%, in the wake of Elon Musk’s statement that he puts in temporary suspension of the acquisition of the popular social media, citing outstanding details about spam and fake accounts.

On the contrary, 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 are strengthened by 11.5% and 6.7%, after yesterday, had reached up to 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 to the 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 surge in stocks 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 be better if interest rates were raised. had started a little earlieras well as that it can no longer guarantee the so-called “gentle landing”.

In terms of individual stock movements, Boeing is at the top of the Dow Jones with a rally of 5%, Salesforce is closely followed by + 4.2% and American Express and Nike are strengthening more than 3%.

Apple and Microsoft are at + 3.3% and 2.3% respectively, Amazon at + 4.1%, Alphabet at + 3.75% and Facebook parent Meta at + 3.4%.

By contrast, IBM traded up 0.8% and Merck was down -1.53%.

Finally, in the macroeconomic news of the day, the April remained unchanged US import pricesas declining oil costs offset rising food and other products,