Stock market: Wall Street ends sharply, fourth week of gains for Nasdaq

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MARKET OVERVIEW. The New York Stock Exchange closed sharply higher on Friday, still buoyed by hopes that inflation has peaked, which would ease the Fed’s monetary policy going forward.

Consult market news (again).

Stock market indices at close of trading

In Toronto, the S&P/TSX gained 187.93 points (+0.94%) to 20,179.81 points.

In New York, the S&P 500 rose 72.88 points (+1.73%) to 4,280.15 points.

The Nasdaq rose 267.27 points (+2.09%) to 13,047.19 points.

The DOW collected 424.38 points (+1.27%) to 33,761.05 points.

The loonie closed down $0.0009 (-0.1197%) at $0.7827.

Oil fell $2.49 (-2.64%) to $91.85.

Gold rose $9.60 (+0.53%) to $1,816.80.

Bitcoin fell $25.80 (-0.11%) to $24,087.98.

the context

Over the week, the Star Shares Index gained 2.92%. The increase is 3.08% for the tech-dominated Nasdaq and 3.26% for the S&P 500, the most representative index of the American market, which has also been in the green over the past four weeks.

Markets were mainly driven by good inflation news this week as consumer prices for July in the US rose 8.5% yoy, compared to 9.1% the previous month, suggesting a peak has been reached.

This eased Wall Street, which hopes the Federal Reserve (Fed) will be less harsh on interest rates going forward.

“After better inflation data, there was a change of heart. But is that justified?” Cresset Capital’s Jack Ablin asked skeptically.

“It could mean that the expectations are too ambitious. It could be that some optimistic investors are getting a little too much ahead,” he said.

The next central bank monetary policy meeting is scheduled for September 21 and by then there will still be the CPI release, but investors are already pricing in a half a percentage point hike instead of three quarters of a point (0.75%) , like the last two times.

Some Fed members have therefore tempered the enthusiasm by reminding, like the San Francisco Fed’s Mary Daly on Thursday, that a 75 basis point turn of the screw remained on the table.

Household morale improves

Other good news released on Friday was the University of Michigan Consumer Confidence Index, which came in much better-than-expected at 55.1 in August, up from 51.5 in July after surmounting all-time lows set in June .

The dollar regained strength, the dollar index, which measures the greenback against a multi-currency basket, gained 0.56% while the euro fell 0.61% to $1.0266, weighed down by recession fears in the euro zone with the sharp rise in energy prices.

is popular Disney (DIS) demand remained up (+3.30%) following the announcement of strong results, a surge in new Disney+ subscribers and the announcement of new streaming offers, either more expensive or with advertising.

Tech megacaps pulled like the Nasdaq Letters (GOOG) (+2.36%), Tesla (TSLA) (+4.68%), Apple (AAPL) (+2.14%). The manufacturer of microprocessors, Nvidia (NVDA) battered after a disappointing earnings warning last week regained strength (+4.27%).

Congratulations from the market Train (PTON)the exercise bike maker (+13.60% to $13.53), which will cut 800 jobs and close stores to become more profitable.

Five major Chinese corporations, including oil majors Sinopec and PetroChina and aluminum heavyweight Chalco, which are listed on Wall Street via American certificates of deposit, have announced that they will soon withdraw from the New York Stock Exchange due to transparency rules demanded by the American stock exchange police officer SEC.

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