(New York) The New York Stock Exchange ended higher Monday on the back of a technical rebound and bargain hunting, after a nightmarish week for Wall Street.
Updated yesterday at 4:15 p.m.
The Dow Jones gained 0.64%, the NASDAQ index, 0.76%, and the broader S&P 500 index, 0.69%.
The Toronto Stock Exchange closed higher on Monday, boosted in particular by the strength of the mining sector. The Toronto floor’s S&P/TSX Composite Index climbed 176.50 points to end the session with 19,562.38 points.
The indices opened in the red, before oscillating around balance for a good part of the day, to end up climbing.
“Today was bargain hunting,” commented Andy Kapyrin of Regent Atlantic.
In fact, the locomotives of the NASDAQ all ended positive after having suffered for several days, in particular Apple (+2.51%), Meta (+1.18%) or Nvidia (+1.39%).
Martyred on Friday after a profit warning, FedEx was also wanted (+1.17%), just like Gap (+4.39%) which had suffered last week from his separation from Kanye West.
For analysts at Briefing.com, the indices also benefited from a technical rebound, the S&P 500 reversing its movement after having flirted with its low on Friday, which corresponded to a low of two months.
Investors are looking towards Washington, where the meeting of the American central bank (Fed) opens on Tuesday, which should announce on Wednesday a 0.75 basis point increase in its key rate, according to economists’ expectations.
“The market has gone so far down, there are so few people bullish on stocks, that there’s not much room for a nasty surprise” from the Fed and a negative reaction from traders, Andy said. Kapyrin.
In this context, preference should be given to stocks of stable, high-dividend companies, he argued. Among them Altria (+ 1.47% Monday), Dow (+ 0.69%) and JPMorgan Chase (+ 0.92%).
The day was also marked by a further rise in bond rates, in tune with the Fed’s offensive rhetoric.
US 10-year Treasuries hit 3.51%, the first in more than 11 years.
The two-year rate, reputed to be more sensitive to market expectations regarding the Fed’s monetary policy, went up to 3.96%, a level more frequented for nearly 15 years.
“We went quickly from an environment in which investors didn’t seem to really pay attention to what the Fed was saying” to “an appropriate and sporadic reaction”, according to Bill Merz, of US Bank Wealth Management.
For the analyst, more than the rise in rates, the market will be sensitive on Wednesday to the economic projections of the Fed as well as to the forecasts of changes in the medium-term rates of its members (“dot plots”).
The creative software giant Adobe remained poorly oriented (-1.15% to 296.06 dollars), part of the market believing the price offered for the acquisition of the collaborative design platform Figma, 20 billion dollars, to be too high.
Despite the wave of bargain purchases, caution remained in order and the cryptocurrency sector was struggling. Coinbase (-5.50%), Applied Blockchain (-3.26%) and Block (-1.82%) paid the price.
with The Canadian Press