Wall Street still up today despite recessionary concerns – Nasdaq ‘sees’ +2%

LAST UPDATE: 20.30

The main indices of the US market move for another day with a positive sign, while investors continue to evaluate the signs of an impending recession.

In particular, the industrial index Dow Jones makes a profit of 220 points or 0.7% and traded on 31,255 unitsthe enlarged S&P 500 is enhanced by 1.15% and is located at 3,889 unitswhile the technology-weighted Nasdaq is moving even better with an increase 1.95% at 11,585 units.

It is worth noting that despite the intense uncertainty of the economic environment and the multiple pressures from the data announced, the major index of the American market S&P yesterday completed its third consecutive upward session, although with small gains in all of them.

The shares of microchip manufacturers gave a significant boost in today’s session, after the strong results announced by the Korean industry giant Samsung, with Micron at +1.8%, Nvidia at +4.5% and AMD at +5. 15%.

The stock of GameStop, once the “favorite” of small investors on Reddit’s WallStreetBets, also jumps more than 13%, which announced a 4 to 1 split yesterday. In particular, its shareholders will receive a dividend of 3 additional shares at the close of July 18

Investor sentiment appeared to be strengthening yesterday after the release of the Fed’s minutes, in which the bank’s officials reiterated their commitment to fight inflation by further tightening monetary policy, even if this comes at a cost to economic growth. .

At the same time, they indicated – as expected – a new increase in interest rates by 50 basis points or even 75, characterizing as “critical” the return of inflation to the 2% target “in order to achieve maximum employment on a sustainable basis”.

However, economic data is still mixed, as while signs of an impending recession are mounting, some metrics point to significant economic resilience.

Among other things, the number of job vacancies published yesterday showed a slight decline but remained at extremely high levels, with about 2 job vacancies for every unemployed person in the country.

Similarly, the ISM’s services PMI, which accounts for about two-thirds of the economy, also fell sharply yesterday but remained above the 50 points that separate expansion from contraction.

At the same time, however, the Atlanta Fed’s GDPNow index, which focuses on tracking real-time GDP, has slipped to -2.08% for the second quarter, which if confirmed would mark the second straight quarter of contraction. that is, entering the economy and technically into recession.

In the same context, a broad gauge of inflation expectations, which Jerome Powell had pointed to as a key reason for June’s wild 0.75% rate hike, is expected to jump again, perhaps to a record high.

“Everyone is both emotionally and market-exhausted,” Ali McCartney, chief executive of UBS Private Wealth Management, told CNBC yesterday. “So I still think we’re going to have a summer where we’re going to watch what the Fed does, we’re going to watch what’s happening in international politics, we’re going to watch the directionality of the CPI.”

Elsewhere in today’s macroeconomic data, US jobless claims rose slightly last week to a six-month high of 235,000, but that is still a low level and points to a tight labor market.

At the same time, the US trade deficit narrowed for the second month in a row after a record $107.7 billion set in March, falling to $85.5 billion in May by -1.3%.