The New York Stock Exchange, Wall Street, operates this Friday with a mixed trend, although mostly bullish, trying to maintain the momentum of the previous day, when the market crossed an important upward threshold, before a week rich in events and indicators. This occurs in a context in which the world stocks are on their way to register a small weekly increase this Friday, fueled by growing bets that the Federal Reserve from United States will not increase interest rates next week, overshadowing concerns about a possible lack of liquidity in US markets.
He S&P 500 and the nasdaq reached their highs 2023, driven by the rise in the shares of Tesla after its agreement with General Motors. Meanwhile, investors were awaiting inflation data and the next US monetary policy decision next week. For his part, he Dow Jones Industrial Average went up 56.85 pointsor 0.17%, reaching 33,890.46 units
The actions of Tesla Inc. experienced an increase in 5.7% after General Motors agreed to use the company’s Supercharger network. On the other hand, the actions of GM advanced 3.8%.
Thursday, the S&P 500 closed 20% above its low closing date of October 12, which some market participants consider the start of a new market bullish.
Meanwhile, the MSCI World Stocks Index rose 0.1%, indicating a weekly gain of 0.6%. However the STOXX 600 pan-European presents a fall of 0.3%, due to the influence negative chemical actions after Croda International, a British company, published a weak earnings outlook.
On the other hand, the futures of Wall Street showed a decline of 0.1% after the S&P 500 entered a technical bull market the day before.
What the market expects
Market operators consider that there is 73% chance that the Fed keeps rates stable in the range of 5% to 5.25% June 14. This would mark the end of its most aggressive cycle of increases since the 1980s. Bets in favor of a pause were supported by data showing an increase in the number of applications for unemployment benefits in the United States, indicating an easing in the labor market and could further curb inflation.
Furthermore, investors expected the Fed to temporarily halt its campaign of rate increases due to concerns on the liquidity of the market, generated by the negotiations on the US debt ceiling. “We are all worried about liquidity,” said Invesco’s Ben Jones.
For US Treasuries, two-year yields, which are highly sensitive to monetary policy expectations, rose 4 basis points to 4.56%, while the yields of the 10-year notes improved by 4 basis points, standing at 3.753%.
The rally of large-cap stocks, better-than-expected corporate results and expectations that the Federal Reserve is nearing the end of its rate-hike cycle have supported Wall Street this year, despite fears of an impending recession and persistent inflation.
Source: Ambito
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