The reaction to the Wall is strengthening, led by the Nasdaq

LAST UPDATE: 19:53

Wall Street indexes posted big gains on Wednesday, with the U.S. market reversing course after losses in the first two sessions of August, as investors focused on corporate results, always keeping an eye on the Federal Reserve’s plans for further hikes. of interest rates.

Specifically, on the board, the Dow Jones industrial index adds 419.65 points or 1.30% and moves to 32,815.82 points, the S&P 500 increases by 1.59% to 4,156.30 points, while the technological Nasdaq shows the best image with gains of 2.51%, at 12,658.35 units.

It is noted that yesterday, Tuesday, the index of blue chips recorded losses of more than 400 points or 1.2%, the S&P 500 lost 0.7%, while the Nasdaq fell 0.2%.

Yesterday’s nervousness on the board was caused by the new tension in Sino-American relations caused by the visit of the speaker of the US House of Representatives, Nancy Pelosi, to Taiwan, which provoked the reaction of Beijing, which considers Taiwan a part of China.

The development raised concerns that it could trigger a new round of friction between the US and China, with perhaps adverse effects on trade, at a time when supply chains continue to struggle from the initial shock of the coronavirus pandemic and the strict lockdowns in many countries in the previous months and then Russia’s war in Ukraine.

Concerns that appear to have faded today as Pelosi’s visit to Taiwan ended without serious repercussions as Beijing reacted coolly.

However, despite the positive start for the indices, yesterday’s comments by Fed officials that the Federal Reserve should continue to raise interest rates to rein in price increases continue to fuel investor caution, keeping the indices from moving decidedly higher.

Investors appear to be waiting for the release of US labor market data on Friday to see how inflation has affected employment and the economy.

As time goes by, the buying mood of investors is strengthened, drawing impetus from the encouraging data for the American economy announced today.

In particular, according to the Institute for Supply Management survey, the service sector in the US showed an improvement in July. In particular, the ISM announced that the non-manufacturing PMI index rebounded to 56.7 points last month from 55.3 points in June, ending a streak of three consecutive months of slowdown.

At the same time, factory orders in the US increased by 2% in June, significantly exceeding the estimates of economists who were expecting an increase but smaller, by 1.2%.

On the business “front”, a jump of more than 10% marks the title of PayPal, which late last night announced second-quarter results better than expectations, with the company however giving a mixed forecast for the full year.

Strong gains are also being recorded by the stock of Robinhood, which yesterday announced plans to reduce its staff by 23% citing the weak economic environment and limited trading activity.