(News Bulletin 247) – After the heavy downturn from August 13 to 18 (worst stock market week since mid-March, with a ‘lowest’ since June 27 to close the ‘3 witches’ deadline), the new week begins well on Wall Street with an S&P500 (+0.7%) which returns to 4,400 and an explosive Nasdaq which garners almost +1.6%.
The 1st hour was a little hesitant, the Dow Jones evolving clearly in the red while the S&P500 grabbed +0.2%… but the buyers regained control and did not let go from 6 p.m. to 10 p.m., literally ignoring the persistent tension in interest rates, with yields at the zenith across the entire curve, from the very short to the very long term.

The Dow Jones remained in the red for -0.1% (-0.5% due to Johnson & Johnson at -3% and Nike at -2%) which is largely offset by a jumping ‘SOX’ index +2.8% in the wake of Palo Alto +14.8%, Nvidia +8.5% (at $470, 1% from its absolute record), Broadcom and ZScaler +4.8%, Applied +4 .3%, AMD and NXP +2.6%.
Also note Tesla’s big boost to the Nasdaq-100 (+1.65%) with +7.3%, Meta also joins the party with +2.4%.

This fourth week of August will be marked on Thursday by the traditional Jackson Hole symposium, bringing together the main central bankers of the world who will meet in a context of questions about the evolution of monetary policies.

This meeting, always very followed by the markets, will conclude with the intervention of Jerome Powell, the president of the Federal reserve.

Investors are hoping for signs of weakness to be taken into account (such as the ISM and PMI, which have been falling systematically, month after month since the start of the year), which would allow them to rule out the scenario of a further rise in mid-September. .
But with the rise in oil and fuel prices, there is clearly a risk of a deterioration in inflation figures in August: this is what a ’10-year’ seems to translate, which is stretching by +10Pts to 4.345 %, a ‘6 months’ at 5.51% and a ’30 years’ at 4.46% (against 3.84% exactly 1 month ago).

‘Powell should adopt a less nuanced speech during Jackson Hole from our point of view, knowing that the latest indicators clearly show a risk of rising inflation’, warn economists at BofA.

The foreign exchange market remained very calm with the Dollar frozen around 1.0900E, a ‘flat’ $-Index at 103.3.
The WTI consolidated by -0.6% towards $80.25 on the NYMEX.

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