(CercleFinance.com) – Wall Street should open higher on Tuesday morning after having lined up three sessions of sharp decline, the trend benefiting from cheap purchases before the publication, tomorrow, of inflation figures which could hold some encouraging news .
Half an hour before the start of the session, the ‘futures’ contracts on the main New York indices advance from 1.2% to 2.4%, announcing a strong rebound at the opening.
After five consecutive weeks of decline, investors finally seem determined to seize the buying opportunities offered by the recent correction in the US markets.
Many strategists believe that the selling trend that has been blowing through New York since the start of the year could soon come to an end, as the Nasdaq Composite has now lost 27% of its value compared to the all-time highs reached in last November.
Notably, the Nasdaq Composite sank below its former support of 12,050 points yesterday and broke the 12,000 point threshold to now approach 11,200 points, a ‘gap’ which would bring it closer to its November 2020 levels.
Investor interest seems to be revived above all by the fact that the S&P 500 fell below a whole series of important technical supports yesterday, to finish below the 4,000 point mark for the first time in more than a year.
Some observers believe that the market could find support at this level, likely to lead to redemptions of short positions and especially to buying on the cheap.
Another cause for celebration, the yield on 10-year US government bonds continues to decline towards 2.95% after having reached new multi-year peaks since the beginning of the week.
This long benchmark rate, whose oscillations shake all the markets of the planet, could still relax tomorrow in the event of good surprises on the consumer price index in the United States.
Because, unlike in previous months, the consensus is this time on a weaker price increase, with analysts targeting a rate of 8.1% in April against +8.5% in March.
For Alexandre Baradez, head of market analysis at IG France, the possibility that inflation has reached a plateau could change the general mood of the markets by reducing the pressure on the shoulders of the Federal Reserve.
“This could start to be felt with the beginning of a change in appetite for the dollar, thus benefiting the euro, a slight easing of short rates and perhaps the beginnings of a stabilization of the equity markets”, underlines t -he.
Copyright (c) 2022 CercleFinance.com. All rights reserved.