Wall Street contrasted, after the slide of the S&P 500 index in the bear market last Friday: the list entered the bear market at the intraday lows during the session, and then recovered from the bear market condition (-20% from the all-time highs) at the close of the session, when he closed practically flat. The S&P 500 has thus emerged from the bear phase, but remains dangerously close to it, as it is far from the all-time record of 18%, compared to -15.4% compared to the all-time record of the Dow Jones. The Nasdaq is broadly in the bear market, down 30% from its previous highs.
The Dow Jones, at about 16.00 Italian time, rose by 0.83%, the S&P 500 advanced by 0.36%, while the Nasdaq was lagging behind with a decline of 0.36%.
Last week, the Dow Jones closed in the red for the eighth consecutive week, the longest downtrend since 1923, while the S&P 500, with its seventh consecutive week of dips, suffered the strongest downtrend since 2001.
Among the headlines in today’s session, VMWare soars more than + 20%, after Bloomberg News and Reuters reported that chip maker Broadcom is in talks to buy the cloud services group. Broadcom drops more than 4%.
Buy also on Electronic Arts after some rumors, according to which the video game producer is actively pursuing an M&A operation, in the form of a merger or sale.
Market sentiment appears to have improved after US President Joe Biden said he was considering reducing tariffs on some products imported from China.
At the same time, Biden said he would be prepared to use force to defend Taiwan, thereby sparking a strong backlash from China.
“No one should underestimate the strong determination, firm will and great ability of the Chinese people to defend national sovereignty and territorial integrity, and no one should go against the 1.4 billion Chinese,” the ministry wrote in a statement. of Chinese Foreign Affairs.
Returning to Wall Street, Oppenheimer’s chief investment strategist John Stoltzfus commented in a note reported by CNBC that, during periods when the Federal Reserve embarks on a rate normalization process, sell-off phases are not uncommon. . Having said that, in his opinion, after the recent and repeated liquidations, Wall Street is, in his opinion, in a considerable condition of oversold.
The strategist pointed out that large drops have also affected the stocks of companies characterized by solid cash flows and solid profitability and reiterated that Oppenheimer remains “positive on equities, preferring cyclicals to defensive ones and, also, equities. of technology companies whose services and products are deeply rooted in the lives of citizens and also within companies “.