(News Bulletin 247) – Wall Street is expected to open slightly higher on Friday morning, continuing its rebound that began the day before as market participants wait for the only economic indicator of the day, the services ISM.

Half an hour before the opening, the ‘futures’ contracts on the major indices of the New York Stock Exchange advance from 0.4% to 0.7%, a harbinger of a positive opening.

Investors will closely observe the latest monthly data on activity in services in the United States, expected at the start of the session, in order to get a clearer idea of ​​the state of the economy.

Economic activity has held up well this winter, while the latest inflation figures have largely exceeded expectations, suggesting further rate hikes from the Fed.

Preliminary indicators in the services sector have been quite encouraging, thanks in particular to the mild weather, and the ISM should remain in expansion territory in February, albeit decelerating slightly.

For the time being, the trend remains supported by the remarks made yesterday by Raphael Bostic, the chairman of the Federal Reserve of Atlanta, who came out in favor of a ‘slow and steady’ hike in Fed rates.

Bostic even estimated that inflation was likely to fall back in the event of a rise in key rates in an interval ranging from 5% to 5.25%, and this without causing a deep slowdown in activity.

But the persistent fears linked to inflation continue to favor a rise in rates, with a yield on 10-year Treasuries which continues to oscillate around the critical threshold of 4%.

Over the week, the Dow Jones is currently posting a weekly gain of around 0.6%, just like the Nasdaq index.

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