Wall Street lives this Wednesday a mixed day after the consecutive increases that have been recorded on the other side of the Atlantic and the historical highs that are seen, day in and day out, in the S&P and the Nasdaq. Yesterday, Tuesday, The Dow Jones experienced its most bullish session in more than a year, and today it is the only index that is saved from the fire by the minimum, while the greatest losses are borne by the Nasdaq, due to the fall of Nvidia (-5.4%) and the rest of the chip manufacturers. The Chip stocks are falling sharply globally – ASML, Nvidia, TSMC – Amid speculation about Tighter restrictions on exports from the US and an increase in geopolitical tensions. This, after 'Bloomberg' has published that The Biden administration is considering more repressive measures to curb companies exporting their critical chipmaking equipment to China. Elsewhere, across the Atlantic, attention remains focused on any signal that might anticipate What the Federal Reserve (Fed) is going to do in September with interest rates. Currently, as you know, most of the market is discounting that it will be then when it will make its first rate cut. In this regard, the governor of the Federal Reserve, Christopher Waller said on Wednesday that the central bank is «getting closer» to interest rate cutsafter second-quarter inflation data showed «that progress toward price stability has resumed.» «I think the current data are consistent with achieving a 'soft landing,' and I will be looking for data over the next few months to support this view. So while I don't think we've reached our final destination, I do think we've reached our final destination.» I think we are approaching the point where a cut in the policy rate is justified.«he said during a speech at the Federal Reserve Bank of Kansas City. In addition, the Current political affairs are still very present after the attack on Donald Trump this weekend, which catapulted him to the White House in his race against a Joe Biden who is very weakened by his cognitive problems. This Wednesday, there is talk that the former president told 'Bloomberg Weekly', in an interview that took place before the shooting in Pennsylvania, that he prefers that there is no rate cut before the elections, that if he wins will keep Powell in office until the end of his term and? is considering choosing JP Morgan CEO Jamie Dimon as Treasury Secretary to replace Janet Yellen. On the business front, the latest corporate results continue to be felt. On Monday, Goldman Sachs and BlackRock published their results, and yesterday, Tuesday, Bank of America and Morgan Stanley. Today there is a break of accounts of large companies on the other side of the Atlantic, before tomorrow's announcement Netflix. At the macro level, the US industrial production for Junewhich rose 0.6%, twice as much as expected; and the content of the Fed Beige Book.
RUSSELL CLIMBS
Experts highlight this Wednesday, in their market chronicles, the rise of the Russell 2000, the US index of small companies.
«It rose another 3.5% (on Tuesday), suggesting a developing sectoral rotation from Big Tech to other sectors. The Russell 2000 is up more than 10% since last week, while the S&P 500 Equal Weight Index rose faster than the normally weighted, technology-focused index,» explains Ipek Ozkardeskaya, senior analyst at Swissquote Bank. Neil Wilson, head of research at Finalto, also stresses that Small caps continue to risewith the Russell up 3% (this Tuesday) for the fifth consecutive day and accumulating gains of 12% in the last month.
OTHER MARKETS
The euro is trading at $1.0941 (+0.40%). Oil is up 1%, with Brent at $84.66 and WTI at $81.96. Gold is hitting new records. It is now trading at $2,478 (+0.45%). Silver is down 0.85% ($31.18). Bitcoin is still rising and is climbing above $65,000 ($64,929). Ethereum is up to $3,460. The yield on 10-year US bonds is up to 4.173%.