(New York) The New York Stock Exchange rebounded significantly on Monday, less worried about geopolitical tensions and focused on the technology results which will be revealed this week.
The Dow Jones index gained 0.67% to 38,239.98 points, the NASDAQ, with its strong technological coloring, climbed 1.11% to 15,451.31 points and the broader S&P 500 index returned to the above the 5000 point mark, increasing by 0.87% to 5010.60 points.
This rebound at the start of a busy week and in results, and in key indicators for the American economy, comes after another mediocre weekly performance, shaken by concerns of escalation in the Middle East between Israel and Iran .
“Markets are breathing a collective sigh of relief because tensions in the Middle East have not worsened,” commented Adam Sarhan of 50 Park Investments.
“On the eve of the weekend, stock markets were selling stocks because they feared the situation would explode,” the portfolio manager explained.
“This was not the case and cool heads prevailed,” he added, emphasizing that not only the stock exchanges, but all the markets had “adjusted” to this relaxation.
So oil ended slightly lower. As for gold, the safe haven par excellence, it lost 2.58% to $2,329.50 per ounce.
Bond rates were calm at 4.61% for ten-year bonds.
This week, investors will be watching for the first estimate of American growth for the first quarter and the PCE inflation index, the preferred barometer of the American central bank (Fed) to gauge inflation.
Analysts on Thursday expect moderate GDP growth of 2.2% on an annual basis for the first quarter.
On Friday, according to Marketwatch, they are counting on an increase in the PCE index of 2.6% over one year against 2.5% in February while underlying inflation could fall to 2.7% instead of 2. 8%.
Beyond these macroeconomic data which will have all the attention of the Fed to determine the evolution of its monetary policy, the markets will focus on the results of the big names in technology.
The publications of four of the “Magnificent Seven”, the seven largest capitalizations on the market, are on the program this week with Tesla from Tuesday (-3.40%), Microsoft (+0.46%), Meta (+0.14 %) and Alphabet (+1.43%).
The designer of chips for artificial intelligence Nvidia, which saw its market capitalization of $212 billion melt on Friday by falling 10%, recovered (+4.35% to $795.18).
Elsewhere on the stock market, Chipotle Mexican Grill, the fast-food chain, climbed 0.50% to $2,883.51 shortly before reporting its results.
The client software specialist Salesforce gained 1.28% while its discussions for a takeover of Informatica fell through, according to press information.
Informatica, which develops multi-vendor platforms which notably unify different customer systems, collapsed 10.54% to $31.48.
The “halving” of bitcoin, which occurred Friday evening, which will reduce the creation of bitcoins and therefore has the potential to increase their value by making the cryptocurrency less liquid, has benefited companies in the sector.
Thus the cryptocurrency exchange platform Coinbase gained more than 7%.
And above all, Riot Platforms, a “miner” or creator of bitcoins, soared 23.11% to $11.24.
reference: www.lapresse.ca