(CercleFinance.com) – The New York Stock Exchange rose sharply on Tuesday thanks to a rebound in oil stocks, after having lined up five consecutive sessions in a row against a backdrop of fears for the health of the American economy.
At the end of the morning, the Dow Jones index, which includes the 30 main values of the rating, gained 1% to 29,569 points, while the S&P 500, broader and main reference for many managers, took 1.2% to 3701 points.
The Nasdaq Composite won its side 1.5% to 10,974.8 points.
Nine of the ten major sectors of the S&P are evolving in the green, only the compartment of utilities (‘utilities’) giving ground (-0.5%), even if the segment still shows a 7% increase this year.
The energy sector – which is among the compartments that have suffered the most in recent weeks – is by far the best sectoral progress of the day (+2.8%).
This rebound comes as oil prices start to rise again, the barrel of American light crude oil (WTI) returning to nine-month highs, rising 1.5% to nearly 78 dollars.
Oil prices are rising due to the slight decline in the dollar and the approach of the hurricane season in the United States, but above all the prospect of coordinated action by the major producing countries aimed at supporting the barrel.
Another support for the trend, the publication of several statistics considered
bodes well for growth and lends credence to the scenario of a possible ‘soft landing’ for the US economy.
The confidence index calculated by the Conference Board rose to 108 in September, against 103.6 in August, marking a second increase in a row under the impetus of the good health of the employment market, the vigor of wages and lower gasoline prices.
Another favorable statistic showing that US industry is coping with the impact of rising interest rates without too much apparent difficulty is helping Wall Street to rebound.
Orders for durable goods excluding aeronautics, a closely followed barometer of business investment projects, rose by 0.2% in August.
The VIX volatility index, a barometer of investor anxiety, fell 2.8% to less than 31.4 points.
The tension on the bond markets – which seemed to have calmed down this morning – came back in force at the end of the morning, with a yield on Treasuries which reached new heights beyond 3.97%.
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