Wall Street is trading with soft purchases this Tuesday after A mixed Monday in the US market The Dow Jones closed at its 23rd all-time high of the year and its first since July 17. On the other hand, the S&P 500 and the Nasdaq Composite closed lower, weighed down by the negative performance of technology stocks. Juan José Fernández-Figares, director of analysis at Link Securities, points out that yesterday «sectoral rotation was reactivated» We saw this in early July, with investors selling the stocks that have performed best this year, specifically those in the technology and communication services sectors, to buy stocks or sectors that have lagged behind, such as consumer staples, real estate, utilities, materials, telecommunications and energy. The latter sector was supported by The sharp rise in the price of crude oilwhich was driven higher by two factors. First, the civil conflict in Libya, which led to a halt in oil exports; and, second, the escalation of tension in the Middle East, after Israel and Hezbollah intensified their attacks on the border with Lebanon. On Tuesday, crude oil fell moderately, with Brent trading at $80.9 and WTI at $76.9.
ANOTHER DAY OF TRANSITION
Be that as it may, the truth is that yesterday's day was characterized by the little activitydespite the high volatility, and some analysts point out that this Tuesday's could be very similar. According to Fernández-Figares, this feeling that we are in a «transition» sessions This may be due to the fact that the market is waiting for the main events of the week. Among them, the Link Securities expert highlights Nvidia's resultswhich will be known this Wednesday at the close of the market and which believes that, «They will certainly move the markets, for better or worse»Market analysts point out that, in addition to giving an account of how one of the most followed companies in the world is doing, it will also serve to gauge how technology companies are facing the last part of the yearespecially after the disappointing figures from Tesla and Alphabet (Google's parent company). On the other hand, between Thursday and Friday the results will be announced Preliminary readings for August of the CPIs of the Eurozone and its main economies. Investors are also closely watching the US Department of Commerce's release of the July reading of the Personal consumption price index, known as PCE, the indicator most closely followed by the Federal Reserve (Fed). For Fernández-Figares, the behavior of this reference «may determine the amount of the reduction in official interest rates» that the market expects the Federal Reserve (Fed) to carry out in mid-September. In this sense, the market has become very optimistic in recent days after the Jerome Powellpresident of the US central bank, has indicated that «the time has come to adjust the policy». «The direction forward is clear, and the timing and pace of rate cuts will depend on data, the evolving outlook, and the balance of risks,» Powell said Friday during his speech at Jackson Hole. In addition, the minutes of the Fed's July meeting, released two days earlier, offered a similar clue about the next easing of policy. For the market, the question now is whether How much will the reduction be: 25 or 50 basis points (bp). Pimco analysts say Powell's language «makes clear that the Fed will cut rates by at least 25bp at its September meeting and will signal through its projections that at least two more 25bp cuts are expected at the remaining two meetings this year, in November and December.» Schroders strategists, however, warn that perhaps investor expectations may be «excessive.» On the other hand, investors will be watching closely US GDP updatewhich is due on Thursday, as well as initial jobless claims. «US GDP is expected to have rebounded to 2.8% in the third quarter, from 1.4% a quarter earlier. But the Atlanta Fed's GDP Now index suggests third-quarter growth may be slower than that, at around 2%. Sufficiently weak growth and inflation figures should keep the Fed doves in the playground ahead of next week's jobs data,» said Ipek Ozkardeskaya, senior analyst at Swissquote Bank yesterday.
OTHER MARKETS
He euro remains flat against the dollar (+0%, 1.11 dollars). On the other hand, the ounce of gold falls 0.48% and is trading at $2,543, while the silver loses 0.4% and loses $30. In the market of the cryptocurrencieshe bitcoin falls by around 2% and is trading below $62,500. ethereum followed suit and was exchanged for $2,600. The yield on the 10-year US bond rose to 3.846%.