Wall Street: Be careful when returning from a long weekend

(CercleFinance.com) – Wall Street should open slightly lower on Monday morning, with investors taking a break after a series of four consecutive weeks of increases which allowed the S&P 500 index to recover almost 11%.

Half an hour before the opening, futures contracts on the main New York indices fell from 0.1% to 0.2%, announcing a rather cautious start to the week.

American stock markets had managed to align a new week of gains with the shortened Thanksgiving week, which allows the S&P 500, the benchmark index for fund managers, to now gain nearly 19% this year.

This rebound in the American stock market could encourage some investors to be cautious, even if the end of the year period is traditionally favorable for stocks.

After such an upward movement, investors could be tempted to take out some hedges to protect themselves against a year 2024 which could prove less favorable, according to strategists.

Back in front of their screens after the long Thanksgiving weekend, investors on Wall Street should therefore be less active while waiting for the numerous indicators expected this week.

On the statistics front, investors will see a whole series of figures which will allow them to know more about the health of the American economy at the end of the year.

Tuesday will see the release of the Conference Board’s consumer confidence index, which is expected to show that American households remain worried about inflation.

On Wednesday, the second estimate of third-quarter GDP should confirm that the American economy has held up well, after a first reading which estimated its growth at 4.9% over the July-September period.

Finally, on Thursday, inflation in the sense of the PCE should confirm the slowdown in price increases in the United States.

The week will also be busy with speeches from Fed officials, but nothing seems likely to change expectations of a pause in the institution’s monetary tightening cycle.

The news will be much calmer in terms of company results, with only Dell and Salesforce publications on the program.

On this ‘Cyber ​​Monday’, a day of intense promotions on e-commerce sites, the distribution sector will be particularly in the spotlight following the Thanksgiving weekend and ‘Black Friday’, which kicked off Friday. sending out the Christmas shopping period.

The first indications point to good sales resistance, despite the darkening economic climate, in particular thanks to the strength of categories such as beauty and ready-to-wear for the youngest.

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