(CercleFinance.com) – The New York Stock Exchange opened higher on Thursday morning, continuing for the moment its summer rally which has enabled it to recover nearly 14% since mid-June.
At the end of the morning, the Dow Jones advanced 0.8% to 33,575.9 points, while the Nasdaq Composite won 0.8% to 12,958.5 points.
Wall Street is therefore continuing its upward trend, with investors continuing to rely on encouraging economic indicators to return to buying risky assets.
The trend is largely supported by the single economic statistic of the day, the producer price index which fell 0.5% in July and rose by only 0.2% excluding food, energy and commercial services, rates well below the consensus in both cases.
From an investor’s point of view, this slowdown in inflation – already seen yesterday in the consumer price figures – eases the pressure currently on the shoulders of the Federal Reserve in the context of its monetary policy tightening.
More optimistic about the economy, investors have been buying stocks linked to consumption, technology and industry for the past month in anticipation of a possible soft landing in activity.
The New York indices are also on track to end the week with gains ranging from 2% to 3%, continuing their positive momentum, after having aligned three weeks of gains in a row.
But they are still down 8% to 17% since the start of the year and may find it difficult to find a clear direction, some analysts warn.
‘Given the ambiguity surrounding the evolution of the economy but also of the policy of the Fed, we renew our recommendation not to take too strong positions in one direction or another and maintain a neutral weighting on equities’, recalls Mark Haefele, Chief Investment Officer, UBS Global Wealth Management
Investors will indeed have to approach the second half of 2022 with several subjects of concern, whether it is the uncertainties surrounding the pace of the Fed’s interest rate hikes, the threat of recession, corporate results under pressure or even the looming energy crisis in Europe.
On the stock side, Disney is climbing nearly 5% after attracting more paid subscribers than expected with its Disney+ streaming platform in the past quarter and reporting full-speed activity in its parks division in theme.
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