(CercleFinance.com) – Wall Street should start to rise again in early trading on Monday, with investors opting for optimism before the announcement of results from several technology giants in the coming days.
Half an hour before the opening, futures contracts on the main New York indices rose by around 0.5%, suggesting a positive opening.
Technology stocks have lost momentum over the past month, but they could quickly reaccelerate and widen the gap with other sectors again, as has been the case for several years.
With a gain of 3% since the start of the year, the S&P high technology sector index is currently behind energy and financial stocks, which have climbed 13% and 7% respectively. over the period.
The arrival of the results season, with the publications of the titans Meta, Microsoft and Alphabet, could however bring back investors, who have been worried in recent weeks about the high level of valuations in a context of rising bond yields.
According to FactSet, the technology sector is expected to post profit growth of 12.3% in the first quarter, well above that of the entire S&P 500 index (+0.5%).
Given the weight of the technology sector and in particular the ‘Magnificent Seven’ which now represent 28% of the market capitalization of the S&P 500, its growth is essential to the progress of Wall Street.
While the technology sector has recently taken a break, analysts say it stands to benefit from massive investments in AI and the cloud, leading them to see tech soon coming back into favor.
Beyond the results, investors will continue to monitor the evolution of inflation with the publication, on Friday, of the PCE index in the United States, the Fed’s preferred indicator of price dynamics.
Before that, the publication – Thursday – of the first figures for American gross domestic product (GDP) for the first quarter will be closely followed.
The consensus forecasts a slight slowdown in growth, to 2.9%, after that of 3.4% recorded in the fourth quarter.
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