(CercleFinance.com) – The New York Stock Exchange turned in the green Tuesday morning after starting the session in the red, an easing on the bond compartment masking fears about consumption fueled by a new warning from Target.
At the end of the morning, the Dow Jones thus manages to increase by 0.1% to 32,959.7 points, while the Nasdaq wins more than 0.5% to 12,127.3 points.
Wall Street had yet started the session in negative territory, the warning issued by the distributor Target (-1.3%) having awakened investors’ concerns about the strength of consumption in the United States.
Everything changed when a timid improvement took shape in the bond segment, after a session on Monday which had seen rates peak at record levels, the highest since the spring of 2014.
On the Treasuries market, the yield on 10-year government bonds is currently below 3%, at 2.9720%.
The easing that is taking place on the interest rate market is to be compared to the sharp downward revision of the growth forecasts established by the World Bank.
This is a real blow since the institution’s global growth target has been revised from +4.1% to 2.9% for this year, due to the invasion of Ukraine by Russia and the disruptions caused by the Covid-19 pandemic, which put many countries on the brink of recession.
These same reasons lead the World Bank to anticipate ‘a prolonged period of low growth and high inflation’.
Investors deduce that these prospects could push the major central banks to reflect on the risks of an overly aggressive normalization of their monetary policy.
In terms of the economy, the good news of the day comes from the trade deficit of the United States which fell sharply to 87.1 billion dollars in April, compared to that of 107.7 billion the previous month. .
This sharp month-on-month contraction reflects both a decrease in imports of goods and services and a growth in the country’s exports.
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