Markets recovered some of the ground lost during this volatile week
Wall Street closes the last session of the week with a strong rise, with Apple leading the revival of the tech sector after yesterday’s brilliant quarterly report, with record revenues and profits above expectations. The Dow Jones gains 1.66% (565 points after losing over 300 in startup) to 34,725.47, the S&P 500 rises 2.43% to 4,431.80 points and the Nasdaq leaps 3.13% to 13,770.6 points. Summing up for the week, the Dow Jones gained 1.3% and the S & P500 0.8%, while the Nasdaq ended in a draw. Markets “have recovered some of the ground lost during this volatile week,” Schwab analysts summed up in a statement. Apple grew by nearly 7% (to be exact + 6.98% to $ 170.33).
In one session, the company of Mela has earned over $ 180 billion in capitalization on the back of quarterly results that surpassed analysts’ estimates following the boom in iPhone sales, despite the drag due to supply chain problems. Nothing seems to be able to stop the Cupertino group, not even the supply difficulties, which Apple sees decreasing compared to the current quarter. This optimism has infected sentiment on tech stocks across the board.
And so the other heavyweights of the New York Stock Exchange also closed up: from Facebook (+ 2.40%) to Alphabet (+ 3.37%), from Amazon (+ 3.11%) to Microsoft (+2 , 81%). In addition to the bullish gains, the technology was also supported by a decline in US bond yields following economic data showing that inflation continues to pick up strength at a time when consumers are cutting spending. Consumer spending fell 0.6% in December, the largest monthly decline since February. The slowdown in spending, however, was largely attributed to the impact of the Omicron variant.
“Spending has been hit hard by a combination of factors, between Omicron’s blow to services and people’s willingness to go to malls, and the void left by Christmas shopping, which began much earlier than usual due to fears of shortages. of the most popular products, “according to Pantheon Macroeconomics. The main consumer spending price index, the Fed’s preferred inflation indicator, increased by 4.9%, the fastest pace since 1983. Credit card specialist Visa also in the spotlight (+10 , 60% at $ 228.00), which published better than analysts’ forecasts and made optimistic comments on the trajectory of the economy out of the pandemic.
“After sentiment has moved away from established payment companies, Visa’s relative valuation / growth represents a significant buying opportunity for investors focused on sustainable growth,” Oppenheimer explained in a statement. While the quarterly results showed a slowdown in activity and the stock had opened strongly lower, the brokerage platform Robinhood closed with a net gain of 9.65%, coming in at $ 12.73. Same story for the electric vehicle manufacturer Rivian (+ 5.90% to 57.12 dollars).
After hitting the lowest level since its IPO last November in session, the group rebounded to end up sharply. The Novavax pharmaceutical laboratory (+ 13.71%), the online credit purchasing specialist Affirm (+ 17.06%) and the DoorDash meal delivery platform (+ 7.89%) also took advantage of this. Concerns remain in the background, however, about the direction the Fed is taking. “We believe there will be a moderate slowdown in the (US) economy and corporate earnings in the next two quarters, but if the Fed is too aggressive, the situation will get worse.” , he has declared Eric Freedman, chief investment officer di US Bank Wealth Management. Furthermore, the stalling of the Ukrainian crisis and the continuing rise in energy prices add to the threats to economic recovery.
“The pitched battle between the ‘bulls’ (referring to the bull that goes from bottom to top when it horns), who play the rise, and the ‘bears’ (referring to the bear attacking from top to bottom ), playing decline, broke even this week, “National Securities’ Art Hogan noted. For the analyst, the high volatility observed this week, as well as the large trading volumes, suggest that we are “closer to the low than the high”. In the second part of the session, today, the Vix index, which measures market volatility, fell sharply.
READ ALSO:
– The founder of Eataly Farinetti at Affaritaliani.it: “Quirinale, Draghi president of the Republic. We would lock him up for 7 years. As an entrepreneur who operates in 17 countries, I say that we would make a great figure as a country”
“Italy is safe even with Draghi out of the scene. The Recovery money will arrive and the Pact is not scary”. Luca Tobagi, strategist of Invesco, an asset manager listed on Wall Street for 1,500 billion dollars, speaks
– “Quirinale, no crisis on the horizon. Is a new government coming? Don’t worry: an agenda already armored by Draghi”. The view of the markets on the election of the President of the Republic according to Aymeric Guedy, financial analyst at Carmignac
– “The markets: Draghi at the Quirinale or Chigi. With Franco premier spread between 130-160 points”. The political scenarios analyzed by IG GROUP strategist Diodovich