Wall Street carried by hopes for a decrease in Fed levels

The New York Stock Exchange ended the week in the green on Friday after a free economic session. Similarly, investors showing optimistic about the possibility that the Federal Reserve (Fed) quickly lowers its rates.

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The NASDAQ index (+0.98%), where technological values are concentrated, has reached a new record for the second consecutive session, at 21,450.02 points. Consequently, The enlarged S&P 500 index (+0.78%) ended up at its higher previous level and the Dow Jones won 0.47%.

“The new catalyst that has enabled the markets to bounce back. Therefore, recover last week’s losses was a certain stability of interest rates and anticipations of a recovery of the rate of drop in rates by the Fed,” said AFP Angelo Kourkafas, by Edward Jones.

A very wall street carried hopes decrease large majority of analysts believe that the American central bank will reduce its rates by a quarter of a percentage point after its next monetary policy meeting. However, scheduled in September, according to the CME monitoring tool.

Experts are concerned in particular of a gloom in the labor market. However, after a strong downward revision of job creations for spring last week.

To stimulate employment. the Fed could opt for a more accommodating policy about its interest rates, especially since there could be several changes among its managers.

After the surprise resignation of governor Adriana Kugler last Friday. Donald Trump announced Thursday to propel his economic advisor Stephen Miran to a strategic position within the Fed.

The appointment of this tireless defender of Donald Trump’s economic policy in the media must still be confirmed by. the Senate with a republican majority.

Another long -awaited appointment on the horizon: that of wall street carried hopes decrease the replacement for Jerome Powell. the current president of the Fed, whose mandate ends next spring. Governor Christopher Waller. who had voted for a drop in rate in July, is a favorite, said the Bloomberg agency on Thursday.

The publication of an important inflation index (ICC) on Tuesday “will undoubtedly be a key indicator to confirm. deny these expectations” of a less restrictive monetary policy, says Angelo Kourkafas.

The analyst also stresses that the American place has passed without incident for a week marked by the implementation. of a new salvo of American customs duties on the products of dozens of savings.

For Angelo Kourkafas, the market has “now much more visibility than before” by knowing the surcharge applied to each country.

A number of economic players whose investors “ignore the current economic landscape as if it were a simple background noise”. writes Gregory Daco, economist at EY.

And the wall street carried hopes decrease specialist to prevent: “these are erosive forces that actively undermine the dynamics of the American economy”.

On the bond market, the yield of American state loans at ten years stretched at 4.28% against 4.25% at the end on Thursday.

On the business side, the American biotech Gilead Sciences (+8.28% to $ 119.41 was brought by results in the second quarter expectations. marked by an increase in turnover in HIV-related treatments and by continuing the decline for those related to COVVI-19.

The Expedia travel reservation platform (+4.08% at 195.26 dollars) was sought after revising its forecasts for the full tax year. In the second quarter, it also exceeded expectations with net profit per share of $ 4.24.

The Pinterest social network (-10.31% to 35.13 dollars) has unscrewed due to net profit per lower action than expectations in the second quarter. From April to June, the company, however, beat turnover anticipations.