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Monday, May 20, 2024

USA. At the Wall Street S&500 highest in three weeks, concerns about the banking sector are easing

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Thursday’s session on Wall Street ended with increases in the major indices, and the S&P 500 was at its highest level in three weeks. There were hopes on the market that the crisis in the banking sector was over. Tech stocks rose for the second day in a row.

The Dow Jones Industrial closed up 0.43%. and amounted to 32,859.03 points.

The S&P 500 ended the day up 0.57%. and amounted to 4,050.83 points.

The Nasdaq Composite rose 0.73%. and closed the session at 12,013.47 points.

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Alleviating banking concerns

Investors are scrutinizing the latest information from the banking sector, which has been under pressure in recent weeks.

“We’re starting to see some stabilization, there’s a feeling that somehow the banking crisis is behind us,” said Mike Hewson, principal market analyst at CMC Markets.

– Indices are lifted by a combination of easing banking concerns and the expectation that we are very close to target interest rates. For now, the crisis appears to have been contained, bringing relief to real estate stocks in the hope that interest rate increases are coming to an end,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Kevin Thozet, a member of Carmignac’s investment committee, said after a volatile quarter of major swings in the outlook for the economy, inflation and interest rates, investors summarize.

– We see the correlation between risk-on and risk-off assets working again, which was not the case a year ago. We believe that there is currently value in long-term bonds issued by well-rated issuers in or in the US euro area – said Thozet, adding that interest rate hikes in the US are coming to an end.

According to Goldman Sachs strategists, investors should buy high-margin US growth stocks, avoiding low-margin growth stocks, even as equity and bond markets send mixed signals about the likelihood of a US recession.

Citigroup strategists said markets were becoming complacent, ignoring recession risks and recovering from October lows based on a soft landing narrative.

Data from the economy

Number of first-time applicants unemployment benefit last week in the US was 198,000. Economists expected 196,000 new jobless claims. against 191 thou. previously. The number of people still claiming unemployment benefits was 1.689 million in the week ending March 18. Analysts expected 1.7m against previously recorded 1.685m, after revision from 1.694m.

Gross domestic product USA in the fourth quarter of 2022 increased by 2.6 percent. on an annualized basis (SAAR) quarter-on-quarter, the Department of Commerce announced in its third and most recent calculation. +2.7% expected against +2.7 percent in the second count. In the third quarter, the US GDP increased by 2.9 percent, and in the second quarter, the US GDP fell by 0.6 percent. Private consumption increased by 1% in Q4 vs. 2.3% in Q4. in the previous quarter. 1.4% was expected.

Among the growth leaders were semiconductor manufacturers during Thursday’s session. Stocks of companies such as AMD soared.

Tech stocks also rose. Shares went up in Amazon and Apple.

In oil, May WTI futures are trading at $74.22 a barrel, up 1.71%, while May Brent futures are up 0.89%. up to USD 79.09/b.

Main photo source: EPA/JUSTIN LANE



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