(New York) US markets rebounded on Tuesday after their worst week since March 2020, catching the move started by European markets the day before, although the near-term outlook remains bleak.
Updated yesterday at 5:07pm.
The Dow Jones was up 2.15%, the tech-heavy NASDAQ index was up 2.51% and the broader S&P 500 index was up 2.45%.
The European indices, which rose sharply on Monday, remained dynamic: Paris gained 0.75%, London 0.42% and Frankfurt 0.20%.
“Whatever metric you were looking at, the market had fallen too low and it was time for a rebound,” said LPL Financial’s Quincy Krosby.
For the analyst, the move was accentuated by operators who had bet on the indices falling and had to buy back to provide protection.
According to Oanda analyst Craig Erlam, while “all investors are looking for the bottom” of the price decline since the beginning of the year, “many uncertainties in the outlook and the “economic” data show no encouraging signs.
Judging by Tuesday’s trading volume on Wall Street, one of the lowest since the start of the year, the day after a bank holiday, there is a lack of conviction and few investors are recovering in the market.
For the past week, world stock markets have already reeled after several central banks announced significant rate hikes to fight inflation, maneuvers that have weakened economic activity.
In particular, the US Federal Reserve (Fed) implemented an increase of 0.75 percentage points. Their Chairman Jerome Powell’s two-day hearing in Congress, Wednesday and Thursday, will therefore be the focus of markets.
In the bond market, the interest rate on the 10-year loan rose to 3.28% in the US, while rates in Europe remained stable after a sharp rise. The German 10-year bond was at 1.76%, the French with the same maturity at 2.32%.
Technology absorbs colors
The indices were driven by the largest ratings in the rating, all from the technology sector, from Apple (+3.28%) to Alphabet (+4.11%), through Tesla (+9.35%), Amazon (+2, 32%) or Microsoft (+2.46%).
The American breakfast champion (+1.65% to $68.86) will soon split: Kellogg has announced that it will split its operations into three separate companies, each with a public listing.
Bayer dismissed by US Supreme Court
The US Supreme Court on Tuesday dismissed an appeal from Monsanto, now owned by German group Bayer (-2.05% in Frankfurt), finalizing a ruling to pay $25 million to a retiree who Blames weed killer Roundup for his cancer. open the door to billions of dollars in payouts.
On the side of oil and currencies
Bitcoin caught its breath on Tuesday after falling well below $20,000 on Saturday, its lowest level since December 2020. The first cryptocurrency rose 2.91% to $20,864 around 20:50 GMT.
As for oil prices, they have retreated from the plateau, helped by prospects for near-term improvement in demand in the United States and China.
The barrel of North Sea Brent for August delivery rose 0.45% to $114.65, and that of American WTI for July delivery rose 0.99% to $110.65.
On the forex market, the euro gained 0.22% against the greenback to $1.0535.
The yen fell to a fresh 24-year low against the dollar on Tuesday, at 136.70 yen to the dollar, still weighed down by the Bank of Japan’s ultra-loose monetary policy versus the much firmer US Federal Reserve.