Wall expands its uptrend with a new technological leap

The American market continues the upward trend of the last few days, receiving a boost from the positive elements that showed a tendency of deflationary inflationary pressures.

In particular, the industrial index Dow Jones moves upwards 0.8% or 250 units and trades on 32,889 unitsthe enlarged S&P 500 amplified by 1.5% moving on 4,115 unitswhile even today the technologically weighted one stands out Nasdaq with a strong rise 2% at 11,973 units.

Thus, the Dow Jones on a weekly basis strengthened by about 4.6% and is on track to break the 8-week bearish streak, the largest since 1923.

Respectively, the S&P 500 and Nasdaq, which have completed 7 consecutive weeks of decline, their biggest negative streak since 2001 and the dotcom bubble, are strengthening the current one by 4.8% each.

The mood in the US market improved significantly after the publication of the minutes of the May Fed meeting shortly before the close of Wednesday, with investors welcoming the determination shown by the bank officials to tame the extremely high inflation, even with more interest rate increases from what the market predicts if needed.

In any case, the attitude shown by the bank’s management, that they will first proceed with the increases they have announced in advance for the next two months and then judge what is needed, seemed to strongly reassure investors.

And the climate has improved even more today, with data showing that inflationary pressures in the country may have peaked by now.

In particular, the Consumer Price Index (PCE), the measure that the Federal Reserve considers to be the most informative of Consumer Prices, rose slightly by 0.2% in April compared to the previous month, marking the smallest monthly increase in has shown in the last year and a half.

In addition, on an annual basis, the pace of the structural measure of the index slowed to 4.9% from 5.2% last March, declining for the second consecutive month.

Characteristically, the last time that the structural PCE had experienced successive slowdowns was in the first months of 2020, when the coronavirus pandemic began to spread in the USA.

At the same time, consumer spending in the country moved at a rate that exceeded estimates, boosting optimism about the course of the economy in the second quarter amid fears of an impending recession due to rising interest rates.

In particular, consumer spending – which accounts for 2/3 of total US activity – rose 0.9% in April when analysts in a Bloomberg survey expected a smaller increase of 0.7%.

In addition, the growth rate of consumer spending in March was revised upwards from the already strong 1.1% initially announced, to 1.4%.

The positive mood of the week was also confirmed by the fact that the mutual funds in the US recorded net inflows for the first time in the last seven weeks.

According to Refinitiv data cited by Reuters, in the week to May 25, mutual funds in the US attracted net inflows of $ 4.61 billion, recording their first week with a positive balance since April 6 and that with higher net inflows since March 23.

Elsewhere, retailers ‘results continue to be in the spotlight, with Ulta Beauty now seeing its title jump more than 10% after surpassing analysts’ estimates.

In contrast, Gap, which downgraded its earnings guidance, is down 3.5%.

Technology titles are also giving a significant boost to the S&P 500 today, with Autodesk at + 8.8% after the strong results it announced, while Dell is “roaring” with +12.3 after its gains.

Finally, at the top of the Dow are Boeing with + 3%, Apple with + 2.5% and Walt Disney and Microsoft with + 2% each, while only UnitedHealth is moving down with losses of 1%.