Wall Street clings to rebound and ends higher

The New York Stock Exchange ended higher on Thursday and hung a fourth session in the green for the Nasdaq and the S.

Wall Street clings to rebound and ends higher

The New York Stock Exchange ended higher on Thursday and hung a fourth session in the green for the Nasdaq and the S

According to final results, the Dow Jones concluded up 1.12% to 31,384.55 points. The tech-heavy Nasdaq climbed 2.28% to 11,621.35 points and the S

“Markets continued to show some resilience in the face of global recession fears” as the S

“But excitement remains with the arrival of the results season” next week, they added.

The fragility of the rebound in investor sentiment was seen in terms of bond yields where, once again, the ten-year yield curve passed – by very little however – below that of the two-year yields, which is often seen as a bad sign for economic growth.

Yields on ten-year Treasury bills thus stood at 3% against 3.02% for bonds with a shorter duration.

"It's the first time in a while that we've had four positive days in a row and it feels good," Maris Ogg of Tower Bridge Advisors told AFP.

“But I don't think the worst is behind us. It's a respite before the earnings season is upon us,” added the portfolio manager.

The market has continued its momentum since the Fed's publication on Wednesday, which showed that the central bank remained more than ever determined to curb high inflation, which reassured investors.

One of the governors of the Federal Reserve, Christopher Waller, repeated Thursday that he was in favor of a further hike in key rates by three quarters of a percentage point at the next meeting at the end of July.

On the economic data front, weekly jobless claims last week climbed to their highest level since January at 235,000, slightly higher than expected.

If the layoffs remain anecdotal in a still tight labor market, some noted that the pressure on prices, emanating from wage demands, was beginning to fade.

A very tight labor market favors wage increases and therefore inflation.

“A rise in layoffs, particularly in sectors like technology, cryptocurrency, artificial intelligence and autonomous driving, suggests a reduced ability to demand higher salaries,” noted Art Hogan of National Securities.

Official US employment figures for June are due Friday.

Stay realistic

"Let's stay realistic," tempered Maris Ogg. “Everything will depend on inflation in the next three to six months. Because if it subsides, the Fed will be less combative, but if it persists, the central bank will continue to tighten its screws and, for the moment, it is the unknown”, she added, fearing that if the rise in prices drops from 8.6% to 6% by the end of the year, “that is not enough” to reassure the market.

On the stock market, the energy sector (3.51%), helped by a rebound in crude prices, drove the market, as well as the technology sector of the Nasdaq (2.48%).

Semiconductor stocks, which have been battered in recent weeks by recession prospects and supply problems, have regained strength on the back of positive forecasts issued by Samsung Electronics.

South Korean giant Samsung - the world's largest smartphone maker - forecasts an 11.4% year-on-year jump in second-quarter operating profit and expects sales to rise 21% between April and June.

Micron Technology climbed 2.58%, AMD 5.24% and Nvidia 4.81%.

In another vein, the volatile action of the distributor of video games GameStop jumped 15.06% to settle at $135.12 after the announcement of a division by four of its title.

GameStop is thus the latest to multiply its titles to be even more accessible to small carriers, after Amazon, Tesla and Spotify.

Another viral-prone stock, AMC Theaters, also rose more than 15% to $14.48.

The Bed Bath Home Goods Chain

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