Wall Street recovers from a tough week and closes higher

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Wall Street recovers from a tough week and closes higher

The New York Stock Exchange ended sharply higher on Friday, thanks to a technical rebound at the end of a nightmarish week of negative results, mainly driven by uncertainty in Ukraine and China.

At the end of the day, this Friday -May 13-, the Dow Jones gained 1.47%, the technological Nasdaq 3.82% and the S&P 500 2.39%.

For Wells Fargo analysts, Wall Street allowed itself “a pause in the form of an increase”, after five consecutive sessions in the red of the Dow Jones and a new collapse of the Nasdaq.

We needed it but it’s maybe not very significant yet.”, summed up Gregori Volokhine, president of Meeschaert Financial Services. “It would take several sessions of hikes to say the worst is behind us and that, frankly, would surprise me.”

“It should be noted that the upturn is not caused by news” in particular, he emphasized.

In the week the Dow Jones also lost 2.13%, and the Nasdaq 2.79%. Meanwhile, companies that lost heavily in recent weeks were highly sought after and rose: Roblox (+15.36%), Rivian (+9.88%), Snap (+8.70%), Netflix (+7.65%) or AMD (+9.26%).

In a price-seeking environment, even some stock heavyweights rose, for example Apple (+3.19% to $147.11). In addition to these purchases, the session was marked by hedging operations by speculative operators who, in recent weeks, have bet on the fall of shares and indices.

Without a doubt, this week has been unfavorable for the New York stock market, which is just beginning to shake off the shock that the Federal Reserve gave him with the increase in interest rates and it is supported by the de-escalation of inflation, which did not rise in April in the United States, but remains at record highs.

On Friday there was a new swing in the acquisition of Twitter by Elon Musk, who “temporarily” suspended the operation, although he later reaffirmed his willingness to buy.

Twitter deal temporarily on hold pending details that support the calculation that fake accounts effectively represent less than 5% of users,” Musk tweeted this Friday on his own account, where he has 93 million followers.

NEW YORK, NY – The New York stock market closed this Friday a new week in the red, impacted by the aggressive attitude of the United States Federal Reserve. – Photo: Getty Images

Musk later said he remained “committed” to completing the deal, with the market wondering what his true intentions were. Twitter is worth 25% less than Musk’s proposed purchase price.

Consumer confidence falls

Despite the fact that all economic authorities in the United States are doing their best to get the economy moving forward, the confidence of American consumers deteriorated sharply, in May, in all categories of the population, to its lowest level since August 2011.

The index lost 9.4% compared to April, to 59.1 points, according to the preliminary estimate from the University of Michigan released Friday. This deterioration surprised analysts, who expected a drop, but much less, to 63.5 points.

The decline is due both to the perception of current economic conditions and the outlook for the coming months, and is widespread regardless of “income, age, education, geographic area or political sympathy,” summarized Joanne Hsu, economist in charge of this survey. closely followed by the markets.

“Consumers’ assessment of their current financial situation relative to a year ago is at its lowest level since 2013,” Hsu said. More than a third of those surveyed attribute these difficulties to inflation.

However, President Joe Biden assured this week that reducing the cost of living in his country has become a national priority for his entire government team.

With information from AFP.

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