The nasdaq, with a strong technological presence, it leads the rises among the main indices after a losing streak of seven sessions, the first since November 2016.
The liquidation of shares, triggered in August by aggressive comments from the Fed chairman, Jerome Powellhas continued in recent days in a context of signs of an economic slowdown in Europe and China, and by measures by the main central banks determined to control inflation.
But this month’s data highlighted the strength of the US economy, prompting traders to bet on a 75 basis point interest rate hike by the Fed this month. Fed funds futures price more than 80% chance of such a move.
The 10-year Treasury yield fell after hitting June highs earlier in the session, buoying rate-sensitive stocks such as Tesla Inc. Y Microsoft Corp.
“I hope the markets are very volatile… it will be a matter of what we hear from various central bankers this week and some incoming economic data,” said Shawn Cruz, chief trading strategist at TD Ameritrade in Chicago.
“Unless we have a feeling things are going to get dramatically worse on the economic front, you should probably expect 3,900 to be a floor for the S&P 500.”
For his part, the Powell’s speech on Thursday and US consumer price data next week will be scrutinized for clues about the path of monetary policy.
Source: Ambito
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