(CercleFinance.com) – The New York Stock Exchange opened higher on Monday morning, continuing its New Year’s rally as the start of the earnings season approaches and the release of the latest inflation figures, which seem to some optimism.
At the end of the morning, the Dow Jones rose 0.7% to 33,853.2 points, while the Nasdaq Composite climbed 1.9% to 10,770.9 points.
Wall Street thus continues its upward trend of last week, investors betting all at once on an easing of inflation, a slowdown in monetary tightening by the Fed and a good resistance of the economy.
Economists are hoping for the announcement on Thursday of a further slowdown in the rise in consumer prices in the United States, which had reached 7.1% in November, its lowest level in almost a year.
Defensive stocks – healthcare, consumer staples and real estate – are neglected in favor of more dynamic stocks from technology (+2.4%) and non-essential consumption (+2%).
Banking stocks, which will launch quarterly publications this week, also rose in the wake of a rise in the yield of 10-year Treasuries, which rose towards 3.58%.
Oil prices are also recovering, helped by the prospect of a rebound in the Chinese economy, which has reopened faster than expected despite the number of Covid infections which is currently exploding.
On the NYMEX, a barrel of American WTI light crude rose 2.6% to nearly 75.7 dollars.
Investors know that the next few weeks will be decisive since the first month of the year generally sets the general trend on the equity markets.
According to calculations by S&P Dow Jones Indices, when the S&P 500 index rises in January, it is up over the full year in more than 71% of cases.
On the value side, Abercrombie soared 7% following an upward revision of its objectives for the fourth quarter and the whole of the 2022 financial year, after an end to the year qualified as successful.
Uber shares are also trading up sharply (+4.4%), driven by a note from Jefferies, which underlines the gigantic potential market available to the San Francisco-based group.
Macy’s won for its share of more than 7%, the group of department stores having declared Friday evening to have experienced a lackluster end of the year.
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