(News Bulletin 247) – Wall Street should appear higher on Monday in the first exchanges, thus attempting a small rebound after three consecutive weeks of decline which could push some investors to embark on a hunt for bargains.
Half an hour before the opening, the ‘futures’ contracts on the main New York indices advance from 0.1% to 0.4%, suggesting a modest recovery in the opening trend.
The S&P 500, the benchmark index for American fund managers, has fallen by almost 5% since the beginning of August, which brings its progression for the year as a whole to around 14%.
Anticipating further interest rate hikes from the Federal Reserve, investors have indeed turned away from the stock markets for several weeks.
However, market participants could return to buying equities a few days before the highly anticipated Jackson Hole symposium, which begins on Thursday.
This meeting, organized by the Kansas City regional Fed, has brought together central bankers and economists since 1982 in this small mountain resort located in Wyoming.
This year, the event will be dedicated to the theme of ‘structural changes in the global economy’.
During his speech, scheduled for Friday, Jerome Powell, the chairman of the US Federal Reserve, should probably confirm that the central bank is considering further monetary tightening in order to calm inflation.
But the economic context of the moment could also dissuade him from avoiding too abrupt the markets and too specifying his intentions this week.
The tone of the last few minutes from the Fed and the good resistance of economic indicators have in fact taken bond yields to 15-year highs last week.
At more than 4.30%, the yield on US government bonds continues to evolve this morning at peaks since 2008.
Among the other major events of the week, investors will follow tomorrow the latest figures for old real estate, then those for durable goods orders on Thursday.
Nvidia could also draw the rating before the publication, Wednesday evening, of its quarterly results, which will make it possible to know if the enthusiasm of the investors for the values related to the artificial intelligence remains whole.
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