(News Bulletin 247) – The New York Stock Exchange started in the green Monday morning, benefiting from a decline in bond yields ahead of the publication of employment figures, expected next Friday.
An hour after opening, the Dow Jones advanced 0.4% to 33,536.7 points, while the Nasdaq Composite climbed more than 1% to 11,807.2 points. The S&P 500 index rose by 0.7% to 4075.5 points.
US equity markets continue their recovery that began last week, which had seen them gain between 2% and 3% after three consecutive weeks of decline for the S&P.
Fear of persistent inflation that could lead to higher rates for an extended period is giving way to renewed appetite for risky assets, buoyed by hopes of a ‘soft landing’ for the economy. ‘economy.
‘It is true that the prospect of an ideal scenario today seems unlikely, but that of a serious recession is just as much’, underlines a trader.
On the Treasuries market, the yield on 10-year Treasury bills fell to 3.94% after crossing the 4% threshold last week, its highest since last November.
With the decline in bond yields, which represent less competition for equities, investors are slowly rebuilding some positions in the most cyclical sectors.
Only two of the 11 compartments of the S&P 500 are evolving in the red, that of energy accusing for the moment the worst sector performance with a drop of more than 0.7%.
On the oil market, light crude (West Texas Intermediate, WTI) fell 0.4% to 79.4 dollars.
With an increase of 1.7%, technology stocks on the contrary posted the best sector performance, driven in particular by Apple (+2.8%) which benefited from a favorable recommendation from Goldman Sachs.
The firm at the apple – which should benefit according to Goldman from the solidity of its services activity – makes by far the strongest contribution to the progression of the Dow Jones.
In terms of economic indicators, orders to US industry fell 1.6% in January, a figure that reflects the current fragility of the manufacturing sector across the Atlantic.
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