Wall enters December dynamically after yesterday’s ‘dive’

LAST UPDATE: 17:15

Wall Street is entering the last month of the year with a strong upward reaction, as the key indicators are trying to recover from yesterday’s heavy losses amid the worries that the new mutated Omicron executive has sparked worldwide.

Investors are also echoing the latest comments from Federal Reserve Chairman Jerome Powell, who said yesterday that the US Federal Reserve was going to consider at its next meeting this month the acceleration of the slowdown in the emergency asset market program it has launched. last year to support the US economy amid the coronavirus pandemic, as a result of strong economic growth but also estimates that the inflation rally is expected to continue until mid-2022.

However, they are also waiting for today’s presentation of the Fed chairman to the Congress, hoping to get a better picture of the plans of the US Federal Reserve.

In this context, on the board, the Dow Jones industrial average adds 363.82 points or 1.06% and moves to 34,847.54 points, the broader S&P 500 gains 1.43% to 4,632.20 points, while the technology Nasdaq moves 1.37% higher at 15,751.30 points.

It is noted that yesterday the US market closed in November with strong losses, with the S&P 500 losing 1.90%, the industrial Dow dropping 652 points and the Nasdaq losing 1.55%, as the fear of lockdowns returned to the forefront. Moderna CEO Stephan Bancel warns that existing coronavirus vaccines may be less effective in treating the new Omicron mutation.

The US rebound on Wednesday was fueled by shares of companies benefiting from the new opening of the economy, as well as the securities of energy companies, as a result of the rise in oil, and the pharmaceutical industry.

However, government bond yields rose again today, with the US 10-year yield climbing back to 1.5% after falling by 8 basis points on Tuesday to 1.45%, amid fears that the pandemic will undermine economic growth.

The upward reaction is reinforced by the latest data on employment, which showed that American companies continued to add jobs at a healthy pace in November.

In particular, the private sector added another 534,000 jobs last month, up from 570,000 in October, according to a survey by the ADP Research Institute. Analysts’ average estimates in a Bloomberg poll showed an increase of 525,000 positions.

Investors, meanwhile, are trying to assimilate conflicting conclusions about the manufacturing sector that came from two different surveys published today in the US.

In particular, the Institute for Supply Management (ISM) survey showed an increase in manufacturing activity in November, with the relevant index climbing to 61.1 in the previous month from 60.8 in October. Analysts’ average estimates in a Reuters poll put the index at 61.0 points.

On the other hand, the IHS Markit industry survey showed a slowdown in activity, with the relevant PMI falling to an 11-month low amid weaker demand and material shortages.

In particular, the manufacturing PMI fell to 58.3 points in November from 58.4 points in October, lower than the preliminary measure of 59.1 points, according to IHS Markit. This is the lowest measurement since December 2020.