(News Bulletin 247) – Wall Street is expected in the green on Wednesday at the opening, investors timidly continuing their purchases two days from new inflation data.

The ‘futures’ on New York indices signal for the moment an opening up 0.6% for the Dow Jones, 0.7% for the S&P 500 and 0.8% for the Nasdaq.

The sell-offs suffered at the beginning of the month, with the onset of the SVB crisis, give hope for a consolidation scenario that would allow the fundamentals to regain the upper hand and the indices to move forward again.

While the start of the fire that broke out in the banking sector was a reminder of the dark era of the great recession of 2008, tensions have largely subsided since then.

The adjustment in valuations could allow a return to the fundamentals, namely the health of the American economy and the evolution of the Fed’s monetary policy.

Many strategists believe that the tightening of financial conditions – due to the tremors felt in the banking sector – will lead the Fed to end its rate hike cycle soon.

Knowing that the recent market decline has allowed a return to fairer valuations, stock markets could regain their bullish momentum, simply under the effect of the adjustment of investors’ expectations in terms of rates.

Since January 1, the Dow Jones has fallen by more than 2.2%, even though the American economy continues to hold up well, as shown by the solid statistics published in recent days.

In this sense, reassuring figures on inflation on Friday could well alleviate concerns and encourage investors to return to equities.

Today’s session, on the other hand, looks quite calm since the only indicator on the menu for the morning is the weekly oil inventory statistics, which should just move crude prices.

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