(New York) After several sessions of losses, the New York Stock Exchange rebounded on Tuesday, led by the NASDAQ and supported by a volley of good American indicators.
The Dow Jones index advanced 0.63% to 33,926.74 points, the tech-heavy NASDAQ climbed 1.65% to 13,555.67 points and the broader S&P 500 index gained 1 .15% to 4378.41 points.
US equities rallied after strong data from the US economy gave consumer stocks a boost as investors swung back into artificial intelligence trades “, summed up Edward Moya for Oanda.
Real estate, household sentiment, durable goods orders: Many economic data showed Tuesday that “the economy of the United States was not yet broken”, added the analyst in a note.
For Adam Sarhan of 50 Park Investment, “it is obvious that the ‘bulls’ (those who believe in a rising market) have been on the move today”.
“We are coming to the end of the month and the quarter”, a time when investors are starting “to groom portfolios” and buy “after the recent drop”, continued the analyst interviewed by AFP.
“It’s a sign that the market is trending higher,” added Mr. Sarhan.
Durable goods orders for May continued to rise beyond expectations, for the third month in a row, thanks in particular to transport equipment. They rose by 1.7% and by 0.6% without the transport sector.
On the real estate front, housing prices, up for the third month in a row, rose 0.5% over one month in April, according to the Case-Shiller index. As for sales of new homes in May, they reached their highest level for a year.
But the most important event in the eyes of stockholders was the Conference Board’s consumer confidence index for June which came in much better than expected at 109.7 points against 103.8 points expected and 102.5 points the month before. Consumption is the engine of US growth, accounting for some three quarters of GDP.
On the odds, the favorite technology stocks have picked up the slack led by Nvidia, the specialist in microprocessors used for artificial intelligence (+3.06%), Meta, the parent company of Facebook (+3, 08%), Tesla (+3.80%), not to mention Intel (+2.28%) and Microsoft (+1.82%).
Flight of the airlines
The airline Delta soared (+6.84%) after raising its forecast for the whole of its financial year thanks to an increase in demand and a drop in the cost of fuel. This also benefited other companies such as American Airlines (+5.54%) and United Airlines (+5.08%).
An example of the swerve in the discretionary spending sector, after the release of a better indicator of consumer sentiment, cruise lines took off: Carnival took 8.84% and Royal Caribbean 4.31%.
Pharmacy chain Walgreens, on the other hand, plunged 9.34% after lowering its earnings forecast due to lower consumer demand for COVID-19 tests and vaccines.
Bad news from the side of the American manufacturer of electric vans Lordstown Motors which finally declared bankruptcy while prosecuting the Taiwanese Foxconn which it accuses of not having kept its promises of commercial and financial partnership.
The title of the group created in 2018 collapsed by 17.18% to 2.29 dollars.