Wall Street in solid rise, with the buy round aimed at making an encore.
The Dow Jones begins the new trading day by scoring a jump of 400 basis points, then accelerating the pace and flying over 600 points (+ 2.09%), to 30,120.85. The S&P 500 advanced at 15.50 Italian time by 2.4% to 3,767 points, while the Nasdaq Composite rallied by 2.76%, to 11,115.86.
Mark Haefele, director of investments at UBS Global Wealth Management, comments on the trend in US equities, underlining that he believes that “the S&P 500 is in an oversold condition, after falling more than 9% in September, extending the declines from the start. of the year at almost -25% until last Friday’s session ”.
In a situation where “sentiment towards equities is already weak, some periodic rebounds are to be expected – he added – But it is likely that in the short term the markets will remain volatile, mainly driven by expectations on inflation and interest rates”.
Expectations that for now are not overpriced by the Treasury market, which was also beaten by sales last week.
10-year Treasury rates, after having soared to a record high since 2008 above the 4% threshold last week, continue to lose ground, falling to 3.583%.
The Dow Jones finished the first session of October up nearly 2.7%, or 765 points, to 29,490.89 points, returning the best session since June 24th.
The S&P 500 rose about 2.6% to 3,678.43 in what was its best session since July 27, while the Nasdaq Composite rallied nearly 2.3% to 10,815.43 points. .
From an investment perspective, pay attention to the comment by Aninda Mitra, head of the macro and strategy division of investments in Asia at BNY Mellon Investment Management.
According to reports from the CNBC website, Mitra points out that, as a rule, in a context of inflation that in itself erodes the value of the currency, advising to position oneself on cash would not be an appropriate suggestion.
But “cash is probably no longer trash now,” commented the economist, agreeing that, in an inverted US government bond yield curve situation, US cash and US Treasuries are once again looking attractive.
Mitra particularly emphasized the benefits of holding US dollar cash in the portfolio.
It should be noted that the Dollar Index has risen steadily this year, from about 98 points to a value above 111. In this regard, today the euro is on fire against the dollar, jumping 0.98% to 0.9917 .