Wall Street continues its rebound, despite the risk of a ‘shutdown’

(Boursier.com) — Wall Street climbs again before market this Friday, continuing its surge from the day before. The S&P 500 gained 0.4%, the Dow Jones also 0.4% and the Nasdaq 0.6%. Yesterday evening, the technological composite index had regained 0.83% and the DJIA 0.35%. Operators therefore seem to be overcoming their fears linked to the risk of an imminent “shutdown” (government shutdown) and those concerning the Fed’s lastingly restrictive policy… Unless some consider only an economic slowdown linked to the shutdown and the auto strike is ultimately part of the Fed’s work to reduce inflation…

The day will in any case be busy economically speaking across the Atlantic. The balance of international trade in goods in the USA for the month of August will be published at 2:30 p.m. (consensus $90 billion deficit). The income and spending of American households for the month of August will be revealed at the same time (consensus +0.4% for personal income compared to the previous month, +0.5% for consumer spending and +0.2 % for the ‘core PCE’ price index compared to the previous month – or +3.9% over one year). The Chicago PMI manufacturing index for September will be revealed at 3:45 p.m. (consensus 48 according to FactSet). The University of Michigan US Consumer Sentiment Index for September will be announced at 4 p.m. (consensus 67.7 final reading). John Williams, President of the New York Fed, will speak today.

Note that the markets were also somewhat reassured yesterday by the more moderate comments of several central bankers, Thomas Barkin and Austan Goolsbee in particular.