(CercleFinance.com) – The ‘3 witches’ session kept all its promises on Wall Street with US indices ending the month of May at the zenith, with strong scores (from +5.6% to +9.5 % compared to April 19), after having set absolute records.
And the icing on the cake, the Dow Jones finished at 40,000 thanks to a providential boost of +25 Points, at the very last minute.
The Nasdaq rose towards 16,700 Points from the opening (+0.2%) but lost its tone from midday to end down -0.1%: nice consolation all the same with a monthly gain close to +10% (this was the case at 16,725 around 4:30 p.m.), which turns out to be the most spectacular since May…2000.
The most active stocks of the day were Netflix +1.7%, Tesla +1.5%, Alphabet +1.1%, Nvidia -2%, Western Digital -2.7%, Illumina -3%.
But special mention for the S&P500 (+0.12%) which holds 5,300 Points (at 5,303 and aligns 11 sessions of increase out of 12 in May… and a 4 out of 5 this week.
Over the past month, the ‘S&P’ will have gained 6.8%, again, the best ‘May’ vintage in 24 years.
And last but not least, the VIX associated with the S&P500 fell below the threshold of 12 (contraction of -3.6% to 11.95), reflecting a level of market confidence unequaled since December to April 2019.
Excessive appetite for risk or excessive complacency, current VIX levels appear completely disconnected from rate conditions and warning signals of an economic slowdown in the US.
The yield on the ’10 year’ climbs by +5Pts to 4.4250% after falling yesterday to 4.32%, a low in more than a month, the weekly score still remains pleasant with -7.5Pts of base since May 10.
On the US ‘stats’ side, the Conference Board’s leading indicators index, expected to fall by 0.3% in April, fell more sharply than expected, by -0.6% to 101.8 according to the Conference Board , which sees this as a sign of a slowdown in the economy (the index had already fallen by 0.3% in March and analysts expected a more limited decline of around 0.3% ).
The ConfBoard explains the deterioration of the index by the deterioration of consumer morale, the weakness of business order intake and the decline in building permits, but also by the correction of the stock markets in April.
Note that next week will be marked by Nvidia’s quarterly results.
Analysts expect better than expected performance from the processor manufacturer and an increase in its annual targets, as the Californian group is accustomed to.
Apart from the interest rate and equity markets, the most notable event of this Friday is the confirmed ‘breakout’ of silver beyond $29.3 (+3.5% to $30.70). , ten-year record) and the return of the ounce of gold above $2,400 (to $2,410), despite the deterioration of rates and the strengthening of the Dollar towards 1.0850/E.
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