Mixed session for Wall Street in the first session of the week: at about 3.40 pm Italian time, the Dow Jones rises by more than 250 points (+ 0.85%), to 31,338.64 points; the S&P 500 advanced by 0.46% to 3,733 points, while the Nasdaq was negative, down by about 0.45%, to 10,808 points.
Wall Street is back from its best week since June, which saw the Dow Jones rise 4.9%, the S&P 500 rise 4.7% and the Nasdaq Composite jump 5.2%.
A significant assist came from the world of corporate America with the quarterly season. Contributing to the weekly base gains were the buys flocked in last Friday’s session, leading the Dow Jones to rally over 700 points and the S&P 500 and Nasdaq both flying 2.3%.
Interviewed by CNBC David Donabedian, head of investments at CIBC Private Wealth US, wrote in a note that the impression is that of witnessing a “market that goes in two directions”.
“We have a struggle between those who are skeptical and those who believe it is a good time to own shares,” Donabedian pointed out. A fight is practically taking place on the markets between bulls and bears, between bulls and bears.
So far, the publication of the quarterly reports has had mixed effects on equities: on Friday, the prices of the US banking giants Goldman Sachs and JP Morgan Chase have gained more than 4%, while Snap has capitulated by 28% after the publication of the accounts.
This week we get to the heart of the US Big Tech quarterly, with the accounts of Apple, Alphabet, Amazon and Microsoft.
Among the titles protagonists of today’s session, the other Big Tech USA, Tesla, is highlighted, which slips by more than 5%, after the decision of the electric car giant founded and managed by Elon Musk to lower the prices on some vehicles sold in China.
Tesla has cut the list prices of the Model 3 and Model Y in China by up to -9%.
Watch out for the fixed income market, with Treasury rates pointing down. The yields of US government bonds with a ten-year maturity return to rise to around 4.228%, a level in any case lower than the record of the last 14 years, tested last Friday, at 4.337%.
On the other hand, two-year US Treasury rates, those most sensitive to the Federal Reserve’s monetary policy decisions, fell to 4.483%.