Wall Street recovers this Friday from the bad week it experienced, so for the shares in the New York square it is a green day. However, it is still heading towards his worst week in six months.
He S&P 500 rises 0.5%, after a drop caused by growing market concerns that Interest rates probably they will not go down short term. He Dow Jones Industrial Average rises 0.2%, to 34,132 points and the Nasdaq it does so by 0.9%.
Pressure increased on Wall Street as yields in the bond market rise to their highest levels in more than a decade. Fixed income has been rising for months and momentum accelerated this week after the Federal Reserve indicated that it is unlikely to cut its main interest rate in 2024 as investors expected.
Treasury bonds: the highest level in more than a decade
Yields fell a bit on Friday, reducing pressure on the stock market. The 10-year Treasury yield eased to 4.4% from 4.5% on Thursday. However, it remains near its highest level since 2007.
The two-year Treasury yield, moving closer to Fed expectationsfell to 5.1% from 5.2%.
When bonds pay more interest, lInvestors are less willing to pay high prices for stocks. High rates affect especially to securities that are considered more expensive or that force investors to wait longer for big growth in the future.
This has a full impact on technological values. Nvidia, for example, cut its weekly loss to 5% after rising one 1.6% on Friday. The Nasdaq Composite Index, which is heavy on tech and other high-growth stocks, is headed for a loss. 2.8% this week.
A pair of tech companies received better news today, after UK regulators gave preliminary approval to the restructured $69 billion deal. Microsoft to buy video game maker Activision Blizzard. It would be one of the largest technology operations in history, and Activision Blizzard shares rise 1.8%.
Source: Ambito
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