(CercleFinance.com) – After a difficult start, Wall Street is trying to head higher on Monday, with stocks benefiting from some cheap buybacks after their sharp decline since mid-August, while the dollar and yields bonds continue to rise.
At the end of the morning, the Dow Jones fell another 0.1% to 29,546.7 points, while the Nasdaq Composite rebounded 0.6% to 10,938.9 points.
The S&P 500, a veritable barometer of American managers, is recovering by 0.2% after having lost some 17% over the past five weeks, which brings its losses to more than 22% since the start of the year.
Investors seem to be timidly seizing the buying opportunities offered by the recent decline in equities.
Monday’s rebound was supported in particular by stocks linked to consumer discretionary, with a gain of more than 1.2%, followed by the sectors of consumer staples (+0.6%) and technology (+ 0.2%).
On the US bond market, the yield on ten-year US government bonds touched this morning a new peak since 2008 at more than 3.78%, .
Consequently, the inversion of the yield curve is accentuated to reach levels not seen since 2007, a worrying phenomenon when we know that the inversion of the yield curve is considered as the premise of an imminent entry into recession.
On the currency market, the day was marked by the undeniable strength of the dollar, which rose again against all currencies, especially against the pound sterling.
The British currency collapses after the announcement by London of tax cuts likely to further worsen public finances and inflationary pressures.
The dollar is trading against 0.9650 against the euro after rising early in the day to near 0.9555, its all-time high.
Oil edged higher on fears of an OPEC+ quota cut and a halt to Russian exports to countries imposing a cap, with US light crude (West Texas Intermediate, WTI) advancing by 0.3% to $79.
No major indicator is on the agenda.
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