(News Bulletin 247) – Wall Street should rebound on Monday morning despite the concerns that continue to surround the evolution of US monetary policy following the stronger than expected economic indicators published last week.

Half an hour before the opening, the futures contracts on the major New York indices recovered from 0.7% to 1.2%, announcing a positive start to the session.

US equity markets lost further ground last Friday, falling victim to worse-than-expected inflation figures.

Friday’s decline caused the three indices to end the week with weekly losses of more than 3%, their worst performance since the start of 2023.

This is the third consecutive week of decline for the S&P 500 index, while the Dow Jones has now returned to negative territory since January 1 (-1%).

Given the above-expected inflation figures released last week, investors are adjusting their expectations by forecasting ‘higher’ rates for ‘longer’.

‘After the overconfidence of investors observed since the beginning of the year, comes the time to question’, write this morning the teams of IG.

Markets should worry again this week about the health of the US economy, while trying to guess the intentions of the Fed in terms of raising interest rates.

Investors will look, among other things, at the Conference Board’s consumer confidence index or the services ISM.

Published this morning, durable goods orders fell 4.5% in January, after rising 5.1% in December, a much sharper drop than expected.

Excluding transportation equipment, orders for which plunged 13.3% month-on-month, US durable goods orders still posted an increase of 0.7% in January.

Investor caution is also fueled by tensions over bond yields, with 10-year Treasuries holding above 3.94%, a three-and-a-half-month high.

By way of comparison, the ten-year paper rate fluctuated around 3.83% a week ago.

Copyright (c) 2023 News Bulletin 247. All rights reserved.