Market: record after record on Wall Street

(CercleFinance.com) - Wall Street's bullish momentum seems inexorable, all the more so as the uncertainty destabilizing the European stock markets (-1.
5% to -2% this Thursday) seems to be fuelling a buying trend on the other side of the Atlantic ("communicating vessels" phenomenon).

So, record after record, even if the session was less monolithically bullish than Wednesday's (it was one of the best sessions of the year, so it was hard to top it), after a few hesitations in the morning, after opening in record territory, the US indices resumed their upward trend from 6.30 p.m. onwards and advanced linearly for over 3 hours, ending at their highest.

The S&P500 climbed +0.23% to 5,434, the Nasdaq +0.35% to 17,767, the Nasdaq-100 +0.57% to 19,576 (an absolute high was recorded at 19.639 in the wake of Nvidia, which ended on new records (with +3.5% at $129), Broadcom (+12.5%) or Tesla with +2.9% at $182.5.

The Nasdaq-100 seems irresistibly sucked towards 20.000Pts, the S&P500 towards 5,500... and all the more enthusiastically as US rates continue to fall.

The '10 yr' has eased -5Pts to 4.245%, while the '2 yr', more sensitive to short-term expectations, has eased -6Pts to 4.69% (i.e. -30Pts in one week, since the publication of the 'NFP').

The day's US figures only serve to reinforce US investors' confidence in disinflation: US producer prices (PPI) unexpectedly fell by -0.2% in May (to +2.2% year-on-year) due to lower energy prices, according to statistics released by the Labor Department on Thursday.

Economists were forecasting a 0.1% month-on-month rise (after +0.5% in April).

The 'core' index measuring underlying pressure on producer prices, which excludes food, energy and commercial services, was perfectly stable last month after a 0.5% gain in April, and stands at +3.2% year-on-year.

The Labor Department reported 242,000 new jobless claims in the US in the week to June 3, up 13,000 on the previous week.

The four-week moving average - more representative of the underlying trend - came in at 227,000, up 4,750 on the previous week.

However, these 'encouraging' figures were hampered by Jerome Powell's comments, which dampened investors' expectations of monetary easing.

The new interest rate projections of his officials - the famous 'dot plots' - now show only one rate cut in 2024, compared with three so far.

Copyright (c) 2024 CercleFinance.com. All rights reserved.