Wall Street: The Nasdaq erases its losses from the day before


(CercleFinance.com) – The New York Stock Exchange opened higher on Tuesday morning thanks to some welcome signs of easing in the oil market, which favor a return movement towards risky assets.

As midday approaches, the Dow Jones advances by 1.1% to 33,324.4 points, while the Nasdaq Composite gains an increase of 2.2% to 12,863.5 points, which allows it more than erasing its withdrawal from yesterday.

Investors did not let themselves be destabilized by the plunge in the Empire State index, which measures manufacturing activity in the New York region, which fell back into negative territory in March.

The indicator has however deteriorated significantly this month to stand at -11.8, its lowest level since May 2020, against 3.2 in February.

Still on the economic chapter, producer prices rose by 0.8% in February compared to the previous month, a less vigorous rise than expected.

The rebound in equities is currently benefiting a wide range of sectors, including industry (+0.8%), which can be considered one of the big winners from the recent decline in oil prices.

It is nevertheless the discretionary consumption compartment (‘unconstrained’) which posted the most notable gain of the day (+2.8%) after having shown one of the worst sector performances since the beginning of the year. .

Oil stocks are suffering from the decline in oil prices following the confinement of Shenzhen, which could follow that of Shanghai, which means that the two main Chinese economic poles could soon be at a standstill.

While the barrel of American light crude is dropping more than 6%, the S&P index of the energy sector is currently dropping 4.7%.

At the same time, the CBOE volatility index, the main barometer of investor nervousness, fell 0.8% to 31.5 points.

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