Wall street has closed with mixed sign this Friday (Dow Jones: + 0.70%; S&P 500: + 0.33%; Nasdaq: -0.06%), but S&P 500 has closed the week with increases of 2.7% and at all-time highs. In addition, the Dow Jones a 3.4% in the last five sessions, while the Nasdaq has advanced a 2.4%.
President Biden last night announced an agreement with Republican and Democratic congressmen to approve your infrastructure plan, although endowed with much less money than initially planned. The agreement contemplates $ 1.2 trillion over the next eight years, with new investments in infrastructure valued at $ 580 billion.
THE MARKET ADAPTS TO THE FED
On monetary policy, “investors seem to have already accepted that the Federal Reserve (Fed) will be forced, given the strong growth of the economy and inflation, to start the stimulus withdrawal process a little earlier than expected“, they point out from Link Securities.
“It’s more, futures already discount a rise in official interest rates in 2022, something that we understand should not surprise anyone given the strong recovery that this economy is experiencing “, these experts add.
In this sense, the inflation index PCE, which reflects changes in the prices of products and services purchased by consumers in the US and is the measure that the Fed observes to calibrate inflation expectations, has rebounded to 3.9% year-on-year, slightly below the 4% anticipated.
However, this is its highest level in almost three decades, since 1992. For its part, the underlying PCE has risen to 3.4% from 3.1% year-on-year, in line with forecasts. At the last meeting, the Fed had to raise its forecasts for this indicator to 3.4% for the whole year in general rate and until 3% in underlying rate.
COMPANIES AND OTHER MARKETS
Besides, the Fed announced last night that lifts all remaining restrictions on share buybacks and dividends for all 23 banks that have passed your stress testTherefore, these entities are preparing to return billions of dollars that they have in excess of capital to their shareholders.
The KBW Banks index, which groups the main listed banks, has risen by 1.7% and has led the increases.
Furthermore, lThe US Financial Industry Regulatory Authority has fined 11.65 million dollars to a subsidiary of Bank of America for having charged excessive commissions to their clients.
In the business results chapter, Nike has shot up more than 15% after beating the forecasts with its results.
In other markets, oil West texas it rises 0.94%, to $ 73.99, and remains at its highest since April 2019. In addition, the euro it depreciates 0.01% and changes to $ 1.1929. Besides, the ounce of gold rises 0.17% to $ 1,779 while the 10-year American bond it rebounded to 1.526%. Finally, the bitcoin down 7.99% to $ 32,039.