Wall Street: Slight jump after a troubled week


(CercleFinance.com) – The New York Stock Exchange should begin to rebound on Friday morning at the end of a week plunged into turmoil following the marked tightening of the Fed’s policy in the face of inflation.

Half an hour before the open, futures contracts on the main stock indices are advancing from 0.1% to 0.4%, announcing a modest recovery in the trend at the open.

The signs of easing observed on the government bond market contributed to the improvement in risk appetite on the equity markets after the tumble of the previous day.

On the bond compartment, the yield of 10-year Treasuries fell to around 3.30% on Friday morning after approaching yesterday’s peaks since 2011, at 3.45%.

The decline in government bond yields is taking some of the pressure off the stock markets, favoring a rebound with the possibility of picking up some bargains as many stocks have recently been decimated.

However, Wall Street will not come out of this crazy week unscathed and the recovery that is looming today appears very fragile in view of the serious concerns expressed by investors.

Over the week as a whole, the three New York indices all fell sharply, with a loss of 4.7% for the Dow Jones, 6% for the S&P 500 and 6.1% for the Nasdaq.

The market seems concerned about the Fed’s decision to raise rates by 75 basis points on Wednesday while expecting further tightening, a tightening that could plunge the US economy into recession.

This storm warning prompted investors to leave the stock and bond markets to find refuge in safe values ​​such as gold and silver.

Investors are expecting industrial production figures within a few minutes, which will be followed by leading indicators from the Conference Board, which should confirm the ongoing slowdown in the US economy.

The session will also be marked by the expiry of many options and futures contracts, the famous ‘four witches’, a usual source of volatility.

Note that the American markets will be closed on Monday for ‘Juneteenth’, the day of commemoration of the end of slavery.

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