(CercleFinance.com) – The New York Stock Exchange is trying to regain some ground on Tuesday morning after suffering five weeks of heavy losses, supported by some bargain purchases while awaiting new indications on inflation.
At the end of the morning, the Dow Jones however slows the pace and only advances by 0.3% to 32,348.9 points, while the Nasdaq Composite wins nearly 1.3% to 11,772.8 points.
Investors nevertheless seem determined to seize the buying opportunities offered by the recent correction in the US markets, as the Nasdaq Composite has now lost 27% of its value compared to the all-time highs of last November.
Bargain hunters are particularly on the lookout for oversold stocks, particularly favoring the technology (+2.1%), telecoms (+1.8%) and consumer (+0.9%) sectors. .
The energy sector – the big winner in fiscal 2022 so far with a gain of more than 41% since January 1 – rebounded 3.2% after dropping more than 8% yesterday.
The CBOE volatility index, a barometer of investor anxiety, fell 0.6% to 34.5 points, a level that still remains well above its long-term average, located around of 20.
Small cause for celebration, the bond compartment is benefiting from an upturn, with a yield on 10-year US government bonds falling towards 2.98% after having tested the 3.20% threshold on Monday.
A certain caution seems nevertheless to prevail before the publication, tomorrow, of the highly anticipated consumer price figures in the United States for the month of April.
Stock market indices have been rocked in recent months by concerns about inflation and the Federal Reserve’s monetary policy tightening.
The announcement of a slowdown in price increases could change market expectations about the timing and pace of Fed rate hikes, and therefore provide significant reassurance to the markets.
Copyright (c) 2022 CercleFinance.com. All rights reserved.