The New York Stock Exchange managed to rebound Thursday for the penultimate session of a very bad year 2022 for equities.
The Dow Jones index gained 1.05% to 33,220.80 points, the tech-heavy Nasdaq jumped 2.59% to 10,478.09 points and the S&P 500 advanced 1.75% to 3,849.28 points.
“There was hardly any economic news, the rebound is certainly the correction in selling that has taken place in recent days,” commented Ipek Ozkardeskaya, analyst for Swissquote Bank, pointing out that the low trading volumes amplified the movements in a sense as in the other.
For Marris Ogg too “the end of the sales cycle may be in sight,” said the portfolio manager at Tower Bridge Advisors.
Still, the year 2022 will have “clearly been difficult for investors”, commented Art Hogan of B. Riley Wealth Management.
To date on Wall Street, the index of star stocks is down almost 9% over the year, the S&P 500, the most representative of the American market, has fallen by 20%. As for the Nasdaq, where popular technology stocks are concentrated, it tumbled almost 35%.
“The bad news is that 2023 could be bumpy, at least for the first few months,” with the prospect of a mild recession in the US economy, added Art Hogan.
While the calendar of indicators has been very quiet this week, weekly jobless claims in the United States rose more than expected to 225,000 (+9,000) last week, the Department of Labor said Thursday.
The stock market indices reacted by consolidating their rise, seeing in this very slight deterioration in the job market a sign of the effectiveness of the increases in the Fed’s key rates.
Market operators tend to think that this could invite the central bank to slow down its increases in the cost of credit, which aim to cool the job market, therefore the economy and inflation in general.
Yields on ten-year Treasury bills fell to 3.82% from 3.88% and the dollar fell 0.51% against the euro to 1.0666 dollars to the euro.
The eleven sectors of the S&P concluded amply in the green, technology in the lead, whether communication services (+2.69%) or information technology (+2.64%).
Even the real estate sector, although at half mast at the moment due to the rise in interest rates, gained momentum (+2.16%) as did the banks (+1.43%).
The Tesla action, which has suffered heavy losses in recent weeks (-44% in one month), has clearly recovered its head to 121.82 dollars (+ 8.08%).
Its competitors in electric vehicles have followed suit such as Lucid (+5.02%) or Rivian (+5.58%). Major automakers also benefited from the trend, with General Motors gaining 3.50%.
The technology megacaps also rebounded like Apple, Amazon or Alphabet (Google) which all climbed by more than 2.80%. Meta, parent company of Facebook and Instagram jumped 4.01% and Netflix, which benefited from a good rating from analysts, climbed 5.14%.
Three days after the cruel blizzard that hit large parts of the United States and caused transport chaos, the airline Southwest still struggled with the cancellation of 2,300 new flights Thursday and a pile of lost baggage.
The title, however, raised its head a little (+3.70%) to 33.38 dollars after having lost more than 10% since Christmas.
Other airlines also rebounded like American Airlines (+3.08%) and Delta (+2.31%).
© 2022 AFP
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