(CercleFinance.com) – Wall Street is expected to rise on Tuesday in early trading, supported by the continued rebound in technology stocks which outweighs concerns about rising bond yields.
Half an hour before the opening, futures contracts on the main New York indices rose from 0.1% to 0.4%, announcing an opening in positive territory.
Like yesterday, the rating should be mainly driven by a few cheap buybacks on technology stocks after three weeks of decline for the Nasdaq, a decline that has resulted in a loss of nearly 6% of the index since the start. of August.
The rise of the Nasdaq since the beginning of the year still stands at 29%, against +15% for the S&P 500 index, an outperformance which led some analysts to warn that the sector was overvalued.
But some experts point out that the dynamic nature of the technology sector allows investors to adapt to changing trends and hedge against market changes.
“As technology is increasingly present in all industries, investing in this sector provides exposure to a fundamental driver of modern economies, which strengthens the potential for long-term investment,” says Kirill Khitrov, at Lynceus Partners.
“Furthermore, the industry’s ability to foster disruptive breakthroughs can result in extraordinary gains for astute investors,” adds the professional.
Securities that have been the main drivers of the surge on Wall Street this year, such as Nvidia or Tesla, should once again shine on the stock market on Tuesday.
The rise in ‘techs’ should therefore outweigh the continued tensions in the bond market, where rates continue to rise.
The situation is indeed beginning to become frankly difficult on the fixed income markets, with investors wondering where the surge in yields will stop.
The yield on 10-year Treasuries is barely stabilizing a little, around 4.33%, after crossing the 4.35% threshold yesterday, setting a new high since 2007.
On the macroeconomic front, investors will be paying particular attention to sales of existing homes, which may or may not fuel optimism about US growth in the third quarter.
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