Wall Street remains closed this Thursday for the Independence Day ('Independence Day') after the mixed sign on Wednesday, on a day in which the market opened only half a session and in which the S&P 500 and the Nasdaq They scored again new records. Index futures are trading without a defined trend, although the New York Stock Exchange will not open its doors. «The US stocks rally It keeps being backed by the technology sector; others remain cautiously optimistic. A lower interest rate environment should extend the rally to other sectors, but other sectors are unlikely to record the same breadth of gains as the technology sector. If high-value technology collapses, the rest of the market will suffer«, assesses Ipek Ozkardeskaya, senior analyst at Swissquote Bank. Trading will resume on Friday and investors will closely follow the publication of the official employment report June, for which a decline in job creation is expected to reach 100,000 190,000 from 272,000 the previous month. All this, after the ADP consulting This Wednesday showed a Labour market relaxation with 150,000 new jobsbelow the 157,000 in May (revised upward from 152,000) and the consensus estimates, which anticipated a slight advance to 160,000. «We are entering strongly into a period in which 'bad news is good news' as the Federal Reserve (Fed) moves toward its first rate cut. We don't know when it will cut rates, but we do know that The weaker the data, the closer we will be to the first rate cut«, explains Ozkardeskaya.
THE FED CALLS FOR «PATIENCE» WITH CUTS
The labor market is one of the references that the Federal Reserve closely monitored in view of future interest rate decisions. In this regard, the minutes of the last meeting from the US central bank are asking «patience» with the ratessince he claims to need more time for monetary policy to have an effect on prices. Furthermore, a part of the central bankers assured «that there was uncertainty about the degree of restriction of current politics.» For his part, the president of the institution, Jerome Powellhas celebrated the «progress» made in inflationalthough he has asked for a greater «confidence» on the return of inflation to the 2% target to begin rate cuts. «We have made a lot of progress and We have put inflation back on track towards our target«, Powell said at the Sintra Forum (Portugal), although without giving a precise answer about the month in which the rate cuts would begin.
TECHNICAL ANALYSIS
He S&P 500 continues to show signs of strength after overcoming this Wednesday historical highs that drew last Friday intraday in the 5,523 points. «This confirms the end of the lateral consolidation of the last two weeks and makes us think of an extension of the rises to the level of 5,800 points«, comments César Nuez, technical analyst at BitcoinDynamic. However, the expert highlights that it must be kept in mind that, on June 12, a bullish gap which has not been covered at the moment. «This is a sign of the current strength of purchases that invites us to think of an extension of its main bullish trend. We will not see any signs of weakness as long as it remains trading above 5,300 points.«, he adds.
OTHER MARKETS
In other markets, oil West Texas rises by 0.20% ($84.04) and the Brent gains 0.21% ($87.52). For its part, the euro It appreciates 0.23% ($1.0811), and the ounce of gold loses 0.16% ($2,365). In addition, the 10-year US bond yield relaxes to 4.354% and the bitcoin falls by 2.83% ($58,141).