(New York) The New York Stock Exchange attempted a rebound on Monday after further losses last week, with investors awaiting the outcome of the monetary meeting of the American Federal Reserve (Fed) this week.
The Dow Jones gained 0.88%, the NASDAQ jumped 1.31% and the S&P 500 rose 1.01% around 10 a.m. Eastern time.
The major Wall Street indices are in technical correction after four to five weeks of decline, the stock market having been handicapped by a rise in bond rates.
The broader S&P 500 index, the most representative of the American market, lost 2.5% last week and was down 5.6% in October, the worst since October 2018.
“But we are starting a new week, which includes the start of a new month,” said Patrick O’Hare of Briefing.com.
“The positive direction of prices has to do with the negative disposition which preceded”, assured the analyst stressing that the fact of having entered “in the correction zone” gave rise to a burst of rebound and a wave of purchases at the decline.
All the more so, underlines Mr. O’Hare, that the war between Israel and Hamas “did not degenerate into a wider regional conflict over the weekend”.
Oil prices were easing.
Investors were also given confidence on Monday by McDonald’s third quarter results.
The fast food chain posted a 14% increase in sales to $6.69 billion. Thanks in particular to price increases, profit climbed 17% to $2.32 billion, more than expected.
Among the other results of the week which could be the catalyst for a rebound, those of Apple on Thursday feature prominently (+1.51% to $171 around 9:45 a.m. Eastern time).
Investors will monitor the sales performance of the iPhone 15 in China.
Figures from construction equipment leader Caterpillar and the Pfizer laboratory are also expected on Tuesday. On Wednesday it will be the turn of Airbnb, delivery company DoorDash, Electronic Arts and Qualcomm among others.
All eleven S&P sectors were up around 9:45 a.m. ET, led by the Communication Services (+1.84%), Consumer (+1.63%) and Financials sectors. information technology (+1.08%).
Amazon gained 2.44%, Meta, which announced that its ad-free Facebook and Instagram subscriptions would be paid for in Europe, advanced 2.86%. Google increased by 1.80% and Netflix by 1.90%.
The car manufacturer Stellantis gained 1.55% after signing an agreement in principle this weekend with the UAW union which ends a 44-day strike. This continued Monday morning at General Motors (-0.40%).
The event of the week will be, on Wednesday, the decision of the American central bank on interest rates and the press conference of its president Jerome Powell.
“Almost everyone expects rates to be left unchanged between 5.25% and 5.50% with only a 1.4% chance of being raised again,” assured Art Hogan of B. Riley Wealth Management.
“By December, the bets are more nuanced, with 20% thinking that an increase is possible,” he added, referring to calculations on futures products carried out by CME Group.
On the central bank agenda, the market will also have its eyes on the Bank of Japan which meets on Tuesday and the Bank of England which will have its turn on Thursday.
The bond market will also be in the spotlight with the announcement by the US Treasury of its quarterly refinancing needs. “This will reveal to what extent the Treasury will increase its long-term debt issues to finance the widening deficit,” commented Art Hogan.
Yields on the 10-year Treasury note, which touched the 5% threshold last week for the first time in 16 years, stood at 4.87% on Monday.