(CercleFinance.com) – Wall Street is expected to continue its decline on Friday morning, a sixth consecutive session of decline for the Dow Jones index, still penalized by the decline in technology stocks, which have now entered the correction zone.
A little over half an hour before the opening, the ‘futures’ contracts on the Dow Jones and Nasdaq indices yield between 0.3% and 0.7%, announcing a start to the session in the red.
Yesterday’s session had started on a positive note, thanks to some cheap buybacks, but the trend had completely reversed by the end of the day, as caution again took over.
Investors have been worried for several weeks about the pace of the Fed’s monetary policy tightening, which could be more marked than expected against a backdrop of a confirmed rise in inflation.
The US equity markets do not seem ready to interrupt this corrective movement that began at the start of the year, which primarily affects high-tech stocks.
After gaining up to 2% on Thursday, the Nasdaq ended with losses of 1.3% last night, confirming its passage into the ‘correction’ phase, a drop of more than 10% compared to its last high. , which dated from last November.
Sign of the tension of the players, the VIX index of volatility of the American market remains tense with an increase of almost 5% to 26.8 points, a level higher than its median of 23.4 observed over the past year.
On the bond market, the yields of government bonds, of which the
sudden rise is at the origin of the correction on the actions, continued their fall with a rate of 1,78% for the ten-year paper.
The market will take note, at the start of the session, of the Conference Board’s index of leading indicators, expected to rise by 0.8% in December.
If the figures are bad, it could delay the Fed’s rate hikes, if the figures are really good, it could on the contrary encourage the institution to accelerate its monetary tightening.
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