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Wall Street lives a week of rebound and returns to record highs

New York, Jun 25 (.) .- Wall Street said goodbye this Friday to a week of rebound in which two of its main indicators returned to historical highs, as optimism for the economic recovery in the United States prevailed in the market.

In the set of the last five sessions, the Dow Jones Industrials has risen 3.4% and continues to close the gap with its latest record; and the S&P 500 have returned to levels never seen before, appreciating 2.7%, and the Nasdaq index by 2.4%.

Accumulated gains have also been recorded in the main European places: London has gained 1.69%; Milan 1.16%; Frankfurt 1.04%; Paris 0.82% and Madrid 0.71%.

The New York stock market has fully recovered from the losses of the previous week, attributed to the expiration of futures contracts and the possibilities of a near change in US monetary policy.

The rebound began on Monday and was consolidated the following day with the appearance of the president of the Federal Reserve (Fed), Jerome Powell, in a subcommittee of the House of Representatives, to speak about the response to the pandemic.

The most recent indicators continue to show the increase in prices in the country, but Powell has insisted that inflationary pressures will be temporary and will return to normal, and that the market seems to begin to assimilate it.

Another piece of good news that encouraged operators was the agreement reached between senators of different stripes in the Senate this Thursday for a plan of investment in infrastructure of 1.2 trillion dollars over eight years.

Although it has to go through Congress, President Joe Biden stressed that the plan is a big step in the race against China and will create millions of jobs, which will ultimately help the country recover.

That recovery is already palpable in corporate emblems of the country such as the sportswear firm Nike, which shot up 15.5% in the stock market today after reporting a quarter of record sales in the US and good forecasts as leisure returns .

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In that sense, the US economic growth data for the first quarter remained at 1.6% and point to a strong momentum in 2021, so the possibility of more fiscal stimulus adds optimism to the outlook.

For its part, the financial sector has seen a sharp rise based on the good results of the stress tests on the main US banks, which “could withstand another serious recession,” according to the Fed.

In the debt market, the 10-year Treasury bond yield started the week at 1,463% and has been rising to 1,564% registered this Friday.

Analysts noted that the US benchmark is close to its performance prior to last week’s Fed meeting, which caused concern when it mentioned its eventual withdrawal of monetary stimulus, causing a flattening of the yield curve.

“When more concrete withdrawal leads are released, we expect yields in the longer-term range to rise, but the reaction will likely be more modest than in the 2013 market ‘tantrum,” Wells Fargo experts considered. .

The intermediate oil of Texas (WTI) has chained its fifth consecutive week of revaluation above 74 dollars a barrel due to the good prospects for demand, although there is some uncertainty for the next OPEC + meeting and for the negotiations of the nuclear pact with Iran.

(c) . Agency

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