Wall Street regained bullish momentum thanks to technology companies

Wall Street regained bullish momentum thanks to technology companies

The main stock indices of Wall Street They rose this Thursday, June 8, driven by the Nasdaq, although investors remain cautious waiting for the inflation data and of the Federal Reserve monetary policy meeting in the next week.

The technological index of nasdaq It advances 133.63 points, or 1%, to 13,238.52 units; S&P 500 gains 26.41 points, or 0.6%, to 4,293.93 units; while the Industrial Average Dow Jones adds 168.59 points, or 0.5%, to 33,833.61 units.

Amazon.com Inc. earns 2.8% after Wells Fargo initiated coverage of the company with an “overweight” rating, while Nvidia Corporation and Tesla Inc. They go up about 3% each.

“We’re seeing a healthy rotation” of investor placements “to other sectors, to industries, and that reflects the sentiment that the Fed (the Federal Reserve, central bank) will end its rate hikes soon,” said Art Hogan of B. Riley Wealth Management to AFP.

“We see the upward recovery in the stock market extending”he added.

At LBBW, Karl Haeling agrees that small caps had “a very good week.”

“Bull market widens its base”said the analyst. and it adds up “that enthusiasm around artificial intelligence”.

Among the values ​​of the day, Amazon It gained 2.5% after a research note said the firm’s cloud computing and web services (AWS) will outperform Microsoft or Alphabet in AI-powered service offerings.

Tesla soared nearly 5% post-shutdown after it General Motors announced, like Fordwhich will use the firm’s network of charging stations for its electric vehicles.

Outlook for the US economy

Traders have discounted a 73% chance that the US Central Bank will hold the interest rates in the current range of 5%-5.25% during its June 13-14 policy meeting, according to the tool fedwatch of CMEGroup. However, see a 50% chance of a rate hike in July.

“Our view remains that the Fed will pause in June, but will leave the door open for a July hike, keeping it data dependent. Ultimately, we don’t think the Fed will raise rates in July,” he said. mohit kumarstrategist of jefferies.

He work Department American will publish the inflation data on June 13, the first day of the meeting of the fed. The figures are expected to show that consumer prices cooled slightly in May, but core prices remained stable.

Source: Ambito

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