Wall Street bounces back and ends up in the green

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Wall Street bounces back and ends up in the green

The New York Stock Exchange moved forward Thursday after three sessions ended in the red, ignoring new signs of an acceleration in the pace of inflation in the United States and welcoming an announcement on the health plan.

The Dow Jones Industrial Average, which had recorded its worst session since January the day before, gained 1.29% to 34,021.45 points.

The Nasdaq, with strong technological coloring, rose 0.72% to 13,124.99 points and the S&P 500 gained 1.22% to 4,112.50 points.

“The market has rebounded sharply today despite a worrying new figure on the inflation side,” observes Peter Cardillo of Spartan Capital Securities.

Wholesale prices in the United States have indeed experienced in April their largest increase over one year since November 2010, climbing 6.2%, according to the PPI index published by the Department of Labor.

The day before, the CPI index released by the same ministry had shown an increase in consumer prices of 4.2% over one year and 0.6% over one month, exceeding market expectations.

“What happened today is a reaction to the selling pressure of the last few days,” Cardillo said.

On the employment front, jobless claims also continued to decline in early May in the United States, thanks to the economic recovery that began in the country, announced the Department of Labor.

Between May 2 and 8, 473,000 new jobless claims were registered, less than the 510,000 expected by analysts.

The New York Stock Exchange also enthusiastically welcomed the decision of the American health authorities to lift the obligation to wear masks indoors for Americans vaccinated against Covid-19, hailed as a “big day” in the fight against the pandemic by President Joe Biden.

“The market had retreated a bit before this announcement and regained strength just after,” said Mr. Cardillo.

On the bond market, the 10-year rate on US debt fell to 1.65% against 1.70% Wednesday night.

Among the values ​​of the day, Alibaba’s stock listed on Wall Street fell 6.28%. Weighted down by a record fine from Beijing for obstructing competition, the Chinese e-commerce giant on Thursday announced a quarterly loss of nearly one billion euros.

Boeing took 0.84% ​​after being cleared by the US Aviation Regulator (FAA) to apply its measures to fix the electrical problem affecting several of its 737 MAX aircraft.