(CercleFinance.com) – The New York Stock Exchange rose on Wednesday in early trading, continuing the vigorous rebound that began the day before despite the absence of real catalysts.
At the end of the morning, the Dow Jones advanced 0.2% to 31,905.5 points, while the Nasdaq Composte rose 1.6% to 11,901.4 points.
In the absence of news or major indicators, bargain hunting is supporting the rating, with investors appearing increasingly sensitive to the valuations of stocks that have fallen the most.
“Growing pessimism among Wall Street investors appears to be having the opposite effect, offering some short-term bullish respite,” Wells Fargo analysts said.
Many strategists point out that it is often a good time to buy when market sentiment appears to have bottomed out.
According to Wells Fargo, a recent study has shown that fund managers have reduced their exposure to risky assets to levels comparable to those of October 2008.
In this unattractive context, the S&P 500 – the benchmark index for American managers – posted its best daily performance in almost a month yesterday, with a gain of almost 2.8%.
Despite the recovery observed in recent weeks, the S&P remains down more than 17% compared to January 1st.
Most sectoral indices are moving up, but the sectors that had performed the least well in recent months such as non-constrained consumption (+1.5%) or technology (+1.6%) are the most prominent.
The VIX index measuring the implied volatility of the S&P fell 3.2% to 23.7 points, its lowest level since April.
Another reason for support, the yield on 10-year US government bonds continues to decline, having even briefly sunk the 3% threshold before returning to 3.01%.
However, Wall Street’s rise was more modest than that observed on Monday, which could be partly explained by the clear recovery of the dollar.
The dollar, which had lost ground due to fears of a 50 basis point rate hike tomorrow from the ECB, regained nearly 0.3% against the euro.
As for values, Netflix won more than 4% after reporting quarterly results that were less bad than feared by the markets. The title still yields more than 60% since the beginning of the year.
Tesla is up 1% pending the release, tonight after the US markets close, of its second quarter accounts.
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