Wall Street has bounced this Wednesday (Dow Jones:+0.00%; S&P500:+0.58%; Nasdaq:+1.12%) after moderate sales on Tuesday, with the Nasdaq leading purchases thanks to Nvidia, which has allowed it to reach new historical highs, like the S&P 500. This, in a session in which investors have learned the minutes of the last meeting of the Federal Reserve (Fed). All this while the US Government shutdown continues.
«The US Government remains partially closed, with no sign of reopening because Trump wants to extend the situation and take the opportunity to fire officials and close federal agencies, which will mean opening another legal front to determine if the President has the legal power to do that,» they say at Bankinter. «Delayed jobs data doesn’t help moderates expecting weaker numbersbut according to the Carlyle Group, the US economy created about 17,000 jobs in August, a modest figure and enough to keep the moderates in charge and support stocks,» says Ipek Ozkardeskaya, senior analyst at Swissquote Bank. Thus, the market has learned about the Fed minutes, which have shown «a majority» in favor of further cutting rates in the remainder of the year. It is worth remembering that in its last meeting, the US central bank chose to lower rates by 25 basis points, in a meeting in which Stephen Miran voted in favor of a jumbo drop of half a percentage point. In fact, the market discounts with a 94.6% probabilityaccording to CME’s FedWatch tool, which the Fed will cut rates again by 25 basis points in the meeting that will be held on October 28 and 29. «An interest rate cut this month is almost entirely in the cards, but Any dissenting voice could influence and destabilize investors«says Richard Hunter, director of markets at Interactive Investor
COMPANIES AND OTHER MARKETS
At the business level, during the next sessions the quarterly results of companies such as PepsiCo either Levi Strausswhich will allow us to measure the health of the American consumer or the impact of tariffs. «Just as important as the figures that listed companies disclose about the evolution of their businesses in recent months will be what their managers have to say about the future of its activities and how the new tariffs will impact its demand, its prices and its margins imposed by the US Administration,» they say in Link Securities. In other markets, oil West Texas has risen 1.07% ($62.39) and the Brent has advanced 1.01% ($66.11). For his part, the euro has depreciated 0.25% ($1.1625), and the ounce of gold has gained 1.34% ($4,056), to renew maximums of all time. Furthermore, the 10-year American bond yield has climbed to 4.133% and the bitcoin has added 1.63% ($123,527).
