Wall Street concludes in the green, driven by technology

Wall Street concludes in the green, driven by technology

UPGRADE DAY

The New York Stock Exchange closed in the green on Wednesday, mainly driven by the Nasdaq technology sector, and investors wondered if the market had finally bottomed out. 

According to final results, the Dow Jones index climbed 0.15% to 31,874.84 points and the S&P 500 gained 0.59% to 3,959.90 points, while the tech-heavy Nasdaq climbed 1.58% to 11,897.65 points.

“Looks like the market doesn’t want to go down,” commented LBBW’s Karl Haeling in disbelief after three bullish sessions. out of four for Wall Street indices.

“I thought that with the episode of Mario Draghi, the European market would be strongly tested as well as the euro, but the two held up well”, was surprised the analyst, while the head of the Italian government was close to the exit door on Wednesday evening after the defection of three major parties from his coalition.

The euro, however, fell slightly against the dollar, after a rebound the day before.

According to the latest monthly survey by Bank of America strategists, investors have never had so little exposure to the equity market since 2008 and have never favored holding cash so much since 2001. a beginning of change of positions, underlined Mr. Haeling.

“Now that it looks like the worry of a deep recession is fading a bit, investors are once again returning to tech stocks,” he noted.

“That's not all quite the usual story based on fundamentals and company results, although these have been correct in recent days, which may have helped”, he continued. “But I think positioning changes are the real driver of market action in recent days,” Haeling said.

Corporate results nevertheless weighed well.

Netflix was celebrated (+7.35% to 216.44 dollars), after announcing better-than-expected results the day before with a lower loss of subscribers than expected.

Tesla concluded a small increase (+0.80% to 742.50 dollars) before publishing honest results, despite production slowed down in China by the confinements linked to Covid-19.

The net profit of Elon Musk's group, which is also mired in a legal battle over the takeover of Twitter, amounted to 2.3 billion dollars over the period, almost twice as much as in the 2nd quarter of the year. last year. But its turnover was a little disappointing, at 16.9 billion dollars.

The title, which initially climbed 1.63% in electronic trading after the close, settled at -0.02% around 8:40 p.m. GMT.

Shares of semiconductor manufacturers performed well, such as AMD (+4.13%) or Nvidia (+4.80%). The renewed enthusiasm of investors even affected the very volatile action of the brokerage application Robinhood (+4.21%), which has been rather shunned for several months.

On the foreign exchange market, bitcoin also found colors crossing the $23,000 mark for the first time in five weeks. By 8:30 p.m., it was trading at $23,110.

Real estate also continued to be the focus of investors' attention, as home resales fell in June by 5 .4%, much more than analysts expected.

This bad figure comes after a drastic drop in housing starts in June announced the day before, not to mention a decline in demand for mortgages by 6% last week, to a 22-year low. The real estate sector on the stock market was down 0.53%.

On the bond market, rates on 10-year Treasury bills were stable at 3.02%, still slightly lower than interest rates. two years (3.23%).