Wall Street is trading without a defined trend this Thursday after the mixed sign Wednesday as the market tries to calm the rising US recession fearsafter the weakness shown by the manufacturing sector. Therefore, in this session the economy will once again be the focus of investor interest. For experts at Link Securities, two factors have continued to weigh down the performance of Western equities. «The fear of investors to which The US economy may not be able to achieve a 'soft landing' that the markets have been discounting; and the demanding valuations achieved by many stocks in the technology sectorat the mercy of the emergence of artificial intelligence (AI) and its potential impact on the economy in the medium term, valuations that are now being questioned by many investors, who are choosing to undo positions at forced marches.»We are living a déjà vu situation: Rising dovish expectations from the Federal Reserve (Fed) combined with increasing aggressive bets from the BoJ result in a movement of capital out of risk in equities and a flight to the safety of the Japanese yen. But this time, the price action is not triggered by actual data, but by the fear of seeing a second month of disappointment in US employment datawhich will undoubtedly increase expectations of more than one massive rate cut by the Fed between September and the end of the year,» says Ipek Ozkardeskaya, senior analyst at Swissquote Bank. Therefore, this storm «will not pass until Check that there is no recession in sight and that central banks will indeed lower rates with some joy,» they point out at Bankinter.
EMPLOYMENT, KEY OF THE WEEK
In this sense, the labor market is the great protagonist of the week and focuses the attention of investors. Thus, this Thursday the Employment survey prepared by the consulting firm ADPwhich has been below expectations and has been poorly received by the market. Employment in the US private sector has returned to lose strength in August with the Creation of 99,000 jobs, according to ADP report. The figure was lower than consensus estimates, which anticipated 145,000 jobs. The agenda also included the weekly unemployment datawhich have fallen below expectations (227,000 applications), and the PMI and ISM services corresponding to the month of August, which have shown the second consecutive expansion of the sector, which dispels the doubts generated by the contraction in June. However, the highlight of the week will come on Friday with the Official employment report for Augustwhich is expected to see a rise in new jobs to 163,000 from 114,000 in the previous month.
COMPANIES AND OTHER MARKETS
On the business level, Nvidia has denied having received a summons from the US Department of Justice for possible antitrust concerns. Its shares rebounded by more than 1% in the pre-market after two bearish sessions. In addition, the American telecom Verizon Communications announced this Thursday that it has reached an agreement to to acquire Frontier Communications in a deal valued at $20 billion and that it will be carried out «entirely in cash.» In other markets, oil West Texas rises 0.94% ($69.84) and the Brent advances 0.88% ($73.34). For its part, the euro It appreciates 0.18% ($1.1102), and the ounce of gold earns 0.84% ($2,547). In addition, the 10-year US bond yield relaxes to 3.731% and the bitcoin loses 2.05% ($56,761).