(CercleFinance.com) – Wall Street started in the green on Monday morning after having lined up seven consecutive weeks of decline, a rebound notably fueled by cheap buybacks on financial stocks.
At the end of the morning, the Dow Jones rose 1.8% to 31,815.6 points, while the Nasdaq Composite advanced 0.7% to 11,439 points.
This rebound comes as the S&P 500 came close to entering a ‘bear market’ on Friday, that is to say a figure marked by a fall of more than 20% from its recent highs.
With a decline of more than 3% last week, the S&P has just chained a seventh week of decline in a row, its worst bearish series since 2001.
After this kind of massive sell-off, bargain hunters tend to pop up looking for oversold stocks.
Consequently, ten of the 11 major S&P sector indices are moving in the green on Monday, the only exception being for the defensive compartment of constrained consumption.
The most marked rebounds benefit the energy sector, with a gain of 2.1%, but especially finance (+2.7%) in view of a continued rise in interest rates.
JPMorgan climbs more than 6% after raising its net interest income forecast for 2022 at its annual Investor Day.
Electronic Arts wins its side 2% on information evoking the desire of the video game designer to merge or be bought by a group of the caliber of Disney, Apple or Amazon.
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