The Nasdaq restarts from a new record and the S&P 500 rises for the third consecutive session, in a month that remains positive for both indices. Since early June, the S&P 500 and Nasdaq Composite have gained 1% and 3.6% respectively. The Dow Jones, on the other hand, is negative, and has particularly discounted the weakness of Caterpillar and JP Morgan.
At about 3.45 pm Italian time the Dow Jones is practically flat, with a variation equal to -0.01% at about 33,941 points; the S&P rose just + 0.06% to 4,249 points, while the Nasdaq advanced 0.26% to 14,290 points.
The new record tested by Nasdaq is the first since last April 29 and is explained by the decision of investors to return to focus on the sector of technology stocks.
Market mover of the markets, in the last few hours, was the hearing in the US House of Representatives of the president of the Federal Reserve, Jerome Powell, who reassured that “interest rates will not be raised in advance”.
Again, Powell stressed that “it is very, very unlikely” that US inflation will move towards those conditions of hyperinflation that characterized the 1970s and early 1980s, when inflation shot up above 10%. ”
Powell vowed that the Fed will be vigilant in its role.
“You have a central bank that is committed to ensuring price stability, which has defined what price stability is and which is highly prepared to use its tools for inflation of around 2%. All these factors suggest to me that an episode similar to the one we witnessed in the ’70s… .I really don’t think anything like that could happen ”.
US Treasury yields are rising again, with ten-year rates rising to 1.492%.
Watch out for the positive note from UBS analysts on equities.
Experts said they maintain “a positive tactical view on equities,” however noting that the gains will not be balanced.
“We see potential in markets in some areas that lagged in the second quarter, particularly in China and Japan, as well as in those companies and sectors that are most exposed to the reopening of economies, therefore energy, financial, and small and mid US cap “.
UBS believes that we should instead opt for profit-taking on those winners shares since the beginning of the year that now have a limited margin of upside, such as shares in the real estate market, discretionary consumption and the industrial sector ”.