Wall Street: towards record highs ahead of CPI and FOMC meetings
Balance sheet wraps" pushed the indices to their peaks: annual gains reached their zenith with +20.4% for the S&P500, +37.9% for the Nasdaq Composite and +48.3% for the Nasdaq-100, which approached +50% - a performance achieved only once before in the 21st century.
What a show of strength and confidence in tempered steel, four days before the '4 Witches' session.
And there's always a 'SOX' index to serve as a locomotive when the 'Fantastic 7' are down (Meta -2.3%, Tesla -1.7%, Alphabet and Apple -1.3%). SOX once again broke away from other sector indices thanks to Broadcom +9%, Applied Materials +5%, KLA +4.6%, Intel, AMD and ON-Semiconductors +4.3%, Microchip +3.3%, Western Digital +2.9%.
In the United States and Europe, where three absolute records were also broken on Monday (CAC40 'GR', DAX40 and Euro-Stoxx50), investors showed unshakeable confidence in the continuation of the "end-of-year rally", on the eve of the start of the Federal Reserve's FOMC meeting.
Last Friday's publication of better-than-expected employment figures for November confirmed the scenario of a "soft landing" for the US economy, which would make monetary easing less urgent.
But this has already been forgotten, and other figures - why not inflation on Tuesday - will reassure Wall Street, which has been applauding the emergence of a "Goldilocks" scenario for the past six weeks, in the hope that the CPI will confirm the irreversible decline in inflation... and the drop in fuel prices in November should make a major contribution to this.
Caution can only be seen on the bond markets, which have been consolidating since Friday: T-Bonds ended stable at 4.245% after having exceeded 4.27% during the session (still close to the 4.1% tested last Thursday).
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