(CercleFinance.com) – The week ended on Wall Street with a consolidation without intensity, but which demonstrated the difficulty of maintaining initial gains and the ‘friable’ nature of the market, in the absence of sufficiently determined buyers : the week ended with a total decline of 3%.
During Friday’s session, the Dow Jones lost 0.3%, the Nasdaq, 0.1% (under the weight of Tesla -4.2%) and the S&P500, 0.2%… while the Russell -2000, with -0.3%, has completed erasing its remaining annual gains: back to square one, nine months for nothing!
The yield on T-Bonds fell, but not enough (to 4.44%, compared to 4.495% on Thursday evening): the ’10-year’ ended the week above its previous record of 4.36%, which boded ill for the future of events.
Moreover, Michelle Bowman, recently appointed to the Federal Reserve board, said she expected a new rate increase in the coming months, and the president of the Boston Fed, Susan Collins, judged that ‘a further tightening was ‘clearly not to be ruled out’.
The day’s indicators also confirmed the resilience of the American economy: contrasting with the mediocre composite PMIs published earlier in Europe, that of the United States remained in the zone signaling an expansion of activity, at 50.1 .
This maintenance, however, masked ‘a further loss of speed in growth in the services sector’ according to S&P Global which calculated this index, a signal which seemed to augur a recession that the markets refused to envisage.
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