(News Bulletin 247) – Very nice session on Wall Street: the initial gains doubled over the hours but the ‘technos’ literally took off while the rates fell simultaneously (a most classic phenomenon, but which took a unusual magnitude on Tuesday).
The Dow Jones gained 0.85% beyond 34,850 points, the S&P-500 +1.45% to 4,497 (the 4,500 were hit a few minutes from the close, a highest since August 8) and the Nasdaq Composite broke away with +1.75% to 13.944Pts.
The Nasdaq-100 is flirting with +2.2% (at most since August 7 at 15,390) in the wake of Tesla which jumped +7.7%, Nvidia +4.2%, Broadcom +3.4% , AMD and Oracle +3.2%, Applied Materials +3.1%, Alphabet and Meta +2.8%, Apple +2.2%.
Note the return of appetite for Small Caps with Russel-2000 up +1.42%.
US equities therefore rose against a backdrop of symmetrical declines in bond yields: US T-Bonds for their part erased -10.2Pts towards 4.1070%, the ‘1 year’ erased -6Pts towards 5.405%, the ‘5 years ‘ -11.5Pts to 4.275% as US consumer confidence deteriorated from 114 to 106.1 as economists forecast 116.
The index measuring consumers’ judgment of their current situation fell by -8.2 to 144.8, after 153 in July, while that of their expectations fell to 80.2 from 88 last month.
The ConfBoard recalls that an expectations sub-index below the 80-point threshold heralds a recession, a scenario that the organization continues to anticipate between now and the end of the year.
In addition, the ‘Jolts’ report which compiles job offers in the United States shows a contraction of -340,000 to 8.827 million (i.e. -6.7%): it is a deterioration of an unexpected magnitude even if a decline is logical at the end of the summer when the holiday period is over and there is much less demand from the hotel and catering industry.
Operators remain torn between the prospect of a rate hike in early November (consensus fell this evening from 60% to 50%, i.e. -10% in 24 hours) in the United States, and the signs of a slowdown of the world economy which could lead the FED to consider easing the cost of money.
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