Wall Street: Hesitates in the morning, then opts for an improvement

(CercleFinance.com) – Wall Street ended up opting for an increase, under the positive impact of a wave of cheap buybacks after a weekly fall of -3% for the S&P500 and -5.6% for the Nasdaq .

The main US indices which had reopened up +0.7 to +0.8% had practically erased all of their initial gains after 90 to 100 minutes of trading… but it was at this point that buyers decided to regain control (the S&P500 returning to contact with support at 4,960).
This Monday session made it possible to observe how Wall Street behaved ‘spontaneously’, in the absence of ‘stats’ or speeches from central bankers: the preservation of the supports was facilitated.
In the end, the ‘S&P’ recovered almost +0.9% (to 5,010 after having gained up to +1.5% around 8:30 p.m.), the Nasdaq Composite +1.1% to 15,450, in the wake of Nvidia ( +4.4%, after -10% Friday), Illumina +2.4%, Micron +2.2%, Microchip +2.3%, Cadence Design +1.7%, Alphabet +1.4%.

Note that Tesla, the most active stock of the day, fell again -3.4% (and up to -5% during the session) after announcing a reduction in the price of its models by -$2,000 to try to counter Chinese competition (thus sacrificing its margins, which is already costing it nearly -20% in 1 month and -43% since January 1).

The Dow Jones (+0.7%) laboriously crossed 38,000 and finished at 38,240 in the wake of Goldman Sachs +3.3%, Bank of America +1.7%, Amazon +1.5%.
The earnings season will begin to kick into full swing in the United States this week, with results from tech titans Microsoft, Meta Platforms and Alphabet, which could offer a second wind to the markets.

‘We believe the recent risk aversion environment and correction that has affected technology stocks represents a clear buying opportunity ahead of upcoming results,’ says Dan Ives, analyst at Wedbush Securities.

Beyond the results, investors will be watching the first gross domestic product (GDP) figures for ‘Q1’ (the consensus anticipates a slowdown in growth, to 2.9%, after that of 3.4% recorded in fourth quarter) then the evolution of inflation with the publication, Friday, of the PCE index in the United States, the Fed’s preferred indicator of price dynamics.

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