The indexes of USA are being driven by the actions of technology this Monday (15th), as concerns about rising inflation prompted investors to shift to economically resilient sectors ahead of the release of retail earnings and this week’s data.
S&P’s technology and communications services sectors had the best performance at the start of negotiations, rising 0.4% and 0.6%, respectively, while the Meta led gains among shares of leading technology companies, up 3.2%.
The three main indexes of Wall Street fell between 0.3% and 0.7% last week, due to concerns about the high inflation and the weakening of consumer sentiment. Investors began focusing on growth sectors, particularly technology, later in the week.
“(What) you’re seeing in value growth trading is a term you use in football – happy feet. Investors are ready to abandon a [setor] and switch to the other when they receive some kind of news about inflation.” said Robert Pavlik, senior portfolio manager for Dakota Wealth in Fairfield, Connecticut.
The electric car maker Tesla lagged behind its tech peers, falling 2.9% after its CEO, Elon Musk, got into a fight with Senad Bernie Sanders when the politician demanded that the rich pay their “fair share” of taxes.
Tesla’s declines follow a sharp 15.4% retreat last week after Musk pulled out. disposed of a combined value of $6.9 billion in shares of the electric car manufacturer.
This week’s focus will be on earnings reports from various retailers including Walmart, Target, Home Depot and Macy’s. Its results will end an upbeat third-quarter earnings season that has pushed Wall Street to new highs.
Retail sales data for October will also be released on Tuesday (16), and should show the impact of inflation on consumer spending.
“Inflation will probably end up helping [os varejistas] somehow, because some of these big companies are able to … raise prices and keep them very close to margin levels,” adds Pavlik of Dakota Wealth.
Rising inflation expectations boosted Treasuries yields, which benefited large bank stocks. S&P’s financial sector added 0.2%.
At 11:56 am, Brasília time, the Dow Jones Industrial Average rose 0.26%, at 36,194.89 points, and the S&P 500 advanced 0.27%, at 4,695.65 points. O Nasdaq Composite had rise of 0.30%, to 15,908.20 points.
Boeing was the main driver for the Dow Jones, rising 4% after Emirates announced an order for two 777 freighters and when Saudi Arabian Airlines announced it was in talks with the aircraft manufacturer for an order for a wide-body jet.
The S&P materials sector lagged its peers down 0.7% as signs of weakness in China’s real estate sector hurt major metal miners. The sector is one of the main drivers of global demand for metals.
Dollar Tree added 11.7% after activist investor Mantle Ridge LP revealed a 5.7% stake in the discount retailer.
Reference: CNN Brasil
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.
