Sthe flagship index, the Dow Jones Industrial Average, ended up 1.14% to 23,138.82 points, while the technology-heavy Nasdaq gained 0.38% to 6,579.49 points and the index Expanded S&P 500 appreciated 0.86% to 2,488.83 points.
The indices were however displayed in sharp decline earlier in the day, the Nasdaq dropping to 3.3% an hour and a half or so before the close.
This about-face was not a priori linked to a particular event, but the New York market has for several weeks been plagued by high volatility, reinforced during the truce of the confectioners by the absence of many traders in the trading rooms. . The slightest movement, upwards or downwards, then takes on more importance.
The rebound in stock indices coincided with the start of a recovery in the oil market, observed Peter Cardillo of Spartan Capital Securities.
Even if this factor is not the main contributor, the jump of the New York place appears in any case as a positive sign according to him “because it means perhaps that one reached a floor”.
Intense excitement
Between the fear of seeing the American central bank (Fed) raise interest rates too sharply, the partial paralysis of administrations in Washington, the untimely decisions and speeches of Donald Trump, trade tensions with China and the slowdown in the global economy, Wall Street indices have indeed been strained lately.
They suffered their worst weekly drop since 2008 last week and the S&P 500, the index considered by investors to be the most representative, was still on Monday very close to tipping into what is symbolically called a “depressed market”, when a index drops by more than 20% in a short time.
But they also recorded their best session since 2009 on Wednesday.
This intense excitement is also observed on the black gold market, the barrel of New York oil having plunged 6.7% on Monday before posting its best session in two years on Wednesday, jumping 8.7% and back again on Thursday.
Attractive prices
At the start of Thursday, observers again cited the decline of 1.8% in profits of companies in the industrial sector in China in November or the decline for the second consecutive month in December in consumer confidence in the United States.
Trade tensions between Washington and Beijing have also returned to center stage, after press reports “according to which the Trump administration is preparing to ban American companies from purchasing telecommunications equipment from Chinese groups Huawei and ZTE” , noted Karee Venema of Schaeffer.
But “there (was) not really a fundamental reason” for the new bout of weakness in indices, according to Maris Ogg of Tower Bridge Advisors.
On the contrary, the valuations of companies listed on Wall Street have fallen a lot lately, making them more attractive, and indicators on the US economy remain decent, she said.
In this context, the action of indices is guided a lot, according to her, by technical adjustments made by investors to rebalance the risk levels of the different asset classes within their portfolio and minimize taxes before the end of the financial year. ‘year.
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