Wall Street has recovered after three consecutive days of sell-offs that kicked off after Jerome Powell’s Fed rate announcement. At 16 Italian time, the Dow Jones climbed by 290 points, after having shot up to over 400 points in the opening, to 32,535 points; the Nasdaq is up by more than + 1%, the S&P 500 is up by 1.10%.
Yesterday the fear (now panic) of further flares of inflation caused the Dow Jones Industrial Average to drop by 1.99% (-653 points), the S&P 500 by 3.2%, and the Nasdaq Composite by 4.29. %. In intraday lows, the S&P 500 index slipped below the psychological threshold of 4,000 points, to 3,975.48, the lowest since March 2021 and 17% below the record of the last 52 weeks. The Nasdaq is traveling more than -27% lower than the last record of the last 52 weeks.
The sell-offs hit hi-tech stocks above all: Meta Platforms and Alphabet lost -3.7% and -2.8% respectively, while Tesla capitulated by over -9%.
Technicians are catching up today, with Tesla recovering by more than 4%.
US Treasury rates are turning around, piercing the 3% threshold breached for the first time since the end of 2018 last week, with the Federal Reserve raising rates by half a percentage point (+50 basis points) to the new 0 range. , 75% -1%.
Yields on 10-year US government bonds, which flew up to 3.17% yesterday, today drop below the psychological threshold to 2.99%.
Among the titles protagonists of the Peloton session.
The New York-based indoor fitness company, a 2020 Covid Winner stock, said it ended the first quarter with an increasing balance sheet loss to $ 757.1 million, or $ 2.27 per share, compared to the net loss of $ 8.6 million, or 3 cents per share, in the first quarter of 2021. Liabilities per share were worse than analysts’ estimated 83 cents red. Revenue stood at $ 964.3 million, down from $ 1.26 billion in the first three months of last year and worse than the estimated $ 972.9 million. The outlook for the second quarter is also disappointing.
The stock sinks to over -25% on Wall Street.
Looking at the general trend of the US stock market, Citi analyst Ebrahim Rahbari told CNBC that he believes the equity fund “will be tested over the next two weeks”.
However, Rahbari added that, although this remains the view on Wall Street, analysts of the American banking giant prefer to wait for “the arrival of clearer signs of any stabilization, even temporary, of sentiment on risk”.
Someone remains positive on US-made equities: it is the same number one asset management giant in the world BlackRock, who wrote in a note to remain overweight on equities, with a preference for Wall Street and the Tokyo stock exchange, a against an underweight rating on US Treasuries. And, also, of Marko Kolanovic of JP Morgan, who confirmed to remain “pro-risk”, therefore in favor of risk, with an overweight on commodities and shares, compared to an underweight rating on bonds and cash.
“The sell off of the last week – wrote Kolanovic – appears exaggerated, and largely triggered more by flows of a technical nature, by fear, by scarce market liquidity, rather than by developments concerning economic fundamentals”.